AZBusiness Nov/Dec 2018

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NOVEMBER // DECEMBER 2018

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ARIZONA BANKERS ASSOCIATION

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ARIZONA FORWARD

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Table of Contents 6

Trendsetters

SOMETIMES, IT’S THE SMALLEST COMPANIES WHO HAVE

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CEO Series

14

Healthcare

O

18

Law

24 Holiday Party Planning

THE BIGGEST HEARTS

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28 Holiday Party Venues 32

Marketing

34

Technology

36

Small Business

38

Dining

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40 Wealth management 54 CFO of the Year 81 Arizona Bankers Association 97 Arizona Forward

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ne of the things I love about my job as editor in chief at AZ Big Media is having the opportunity to meet and tell the stories of Arizona’s most powerful and impactful business leaders. But what makes a story even better is when it springs not from one of the state’s biggest companies or most powerful leaders, but from one of the state’s more understated companies.

People who know me well know that I’ve been a runner since age 12 and have competed in hundreds of races over the years, many organized by FieldWorks Events & Marketing, a two -person company that has been doing business in Scottsdale for 20 years. Some of the company’s upcoming races include the Redneck Run, 12k’s of Christmas, Resolution Run, Chinese New Year Run, Kilt Run and the Kiss Me I’m Irish Run. But these aren’t just any races.

“We produce events that not only make substantial donations to charity, they also help raise awareness and facilitate one-onone contact between the community and local charities,” says Darryl Toupkin, president of Fieldworks Events & Marketing, who owns the company with his wife, Kathleen Toupkin.

In this season of giving, it’s astounding to see how much this two-person team has given back to the community: The 12k’s of Christmas, now in its 10th year, has donated more than $80,000 to animal rescue and has helped more than 1,900 dogs, cats and even rats find forever homes.

The Kiss Me I’m Irish Run has partnered with the Arizona Prostate Cancer Center to increase awareness of prostate cancer and has donated $20,000 to the cause, while also underwriting free prostate cancer screenings, which are open to the public.

• To date, Fieldworks has donated in excess of $250,000 to Valley nonprofits.

During this holiday season, we should all aspire to follow the examples set by Fieldworks and the other Arizona companies who place a priority on leaving this world in a better place than they found it.

Happy holidays.

On the cover: Jared B. Black (sitting).

Back, from left: Peter Anadranistakis, Corey Bird, Mark Vange and J.P. Dahdah.

PHOTO BY MIKE MERTES, AZ BIG MEDIA 2

AB | November - December 2018

Michael Gossie Editor in chief michael.gossie@azbigmedia.com

SHOUT-OUTS Valley business leader donates $25M to Mayo

Mayo Clinic has received a $25 million gift from William A. and Carolyn D. Franke and family from Paradise Valley, Arizona. This transformative gift will support scholarships and operations, such as faculty development and curriculum innovation at Mayo Clinic School of Medicine – Arizona Campus. It is the largest contribution in the history of Mayo William Franke Clinic’s Arizona campus. In recognition of the gift, the Mayo Clinic Education Center at Mayo Clinic Hospital in Arizona will be named the Mayo Clinic Franke Education Center.

Dorrance family feeds a need

The Dorrance Family Foundation has awarded a two-year, $1 million grant to Feeding Matters, the first organization in the world dedicated to advancing the research, identification, and collaborative care of pediatric feeding disorders. The transformational contribution from The Dorrance Family Foundation helped launch Feeding Matters’ three-year, $3 million Power of a Name campaign supporting the widespread acceptance and awareness of pediatric feeding disorders.

Fulton helps those who make a difference

Arizona homebuilder, businessman and philanthropist Ira A. Fulton has endowed the Ira A. Fulton Chair in Bariatric Surgery and Metabolic Disorders with a $2 million charitable gift to the Banner Health Foundation. This is the first endowed chair to be established at Banner – University Ira Fulton Medical Center Phoenix, part of the academic medical enterprise born from the 2015 merger of Banner Health and the University of Arizona Health Network. The Fulton Chair is the most thoughtful expression of gratitude to Robin P. Blackstone, MD, who, through her work, has improved the health and longevity of thousands of Arizonans — including Fulton, who came to her for bariatric surgery many years ago.

Desert Financial commits $2M to Phoenix Children’s

Desert Financial Credit Union debuted the redesign of 1 Darn Cool School, Phoenix Children’s Hospital’s in-house education center where patients can continue studies while in treatment, guided by professional, state-certified educators. Desert Financial Credit Union will continue its ongoing support of 1 Darn Cool School with a $2 million commitment over the next three years.

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President and CEO: Michael Atkinson Publisher: Cheryl Green Vice president of operations: Audrey Webb EDITORIAL Editor in chief: Michael Gossie Associate editors: Steve Burks | Alyssa Tufts Interns: Lurissa Carbajal | Brooke Miller Contributing writers: Adam Pierno | Erin Thorburn | Steven G. Zylstra ART Design director: Bruce Andersen Art director: Mike Mertes MARKETING/EVENTS Marketing & events manager: Cristal Rodriguez Marketing specialist: Gloria Del Grosso Marketing designer: Patrick Griffin OFFICE Special projects manager: Sara Fregapane Executive assistant: Mayra Rivera Database solutions manager: Amanda Bruno AZ BUSINESS MAGAZINE Senior account manager: David Harken Account managers: April Rice | Kim Bailey AZ BUSINESS ANGELS AZ BUSINESS LEADERS Director of sales: Sheri Brown HOME & DESIGN AZRE | ARIZONA COMMERCIAL REAL ESTATE Director of sales: Ann McSherry EXPERIENCE ARIZONA | PLAY BALL Director of sales: Donna Roberts RANKING ARIZONA Director of sales: Sheri King Az Business magazine is published bi-monthly by AZ BIG Media, 3101 N. Central Ave. Suite 1070, Phoenix, Arizona 85012, (602) 277-6045. The publisher accepts no responsibility for unsolicited manuscripts, photographs or artwork. Submissions will not be returned unless accompanied by a SASE. Single copy price $4.95. Bulk rates available. Copyright 2017 by AZ BIG Media. All rights reserved. No part of this publication can be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without permission in writing from AZ BIG Media.

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TRENDSETTERS

Fun facts from Arizona’s

We asked some of the most highly respected chefs across Arizona one simple question: Tell us something people would be surprised to know about you.

“I grew up in tight-knit community of commercial salmon fishermen in South Central Alaska. From a young age, my mom and I would spend summers cooking for our ‘adopted family’ of fishermen, when I wasn’t fishing myself, mind you.”

Executive Chef Sara Garrant, Michael Mina’s Bourbon Steak at the Fairmont Scottsdale Princess

“I live on a working farm with chickens, a turkey and horses that I raise and train.”

Executive Chef Samantha Roberts, Riot Hospitality Group

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“I grew up watching my father, Tomaso Maggiore, the master, make Italian cuisine look easy. I decided to follow in his footsteps.

Passion, for me, is cooking and creating restaurant concepts. However, gold chains and a major shoe problem are my second loves.”

“My first restaurant job was working at Denny’s as a dishwasher at 15. I grew up watching culinary shows and have always wanted to work as a chef.”

Executive Chef Joey Maggiore, The Maggiore Group, which includes Hash Kitchen, The Sicilian Butcher, Tomaso’s and Tomaso’s When in Rome

Executive Chef Scott Mortensen, Roaring Fork

“I was born and raised in eastern France and have been working in kitchens since I was 16. I have cooked French food for more than 30 years, but I LOVE American dishes, especially barbequed ribs and fries.”

“I grew up in Pinedale, Wyoming, a small town of 1,500 people and no stop lights. My family had a ranch of about 100 cattle. As a child, I named all my cattle after spices — my first three being Salt, Pepper and Sugar. Sugar’s first babies were the Nut-Meg twins.”

Chef Jean-Christophe Gros, Voila French Bistro

Chef Tandy Peterson, Mowry & Cotton at The Phoenician

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60,000+ 300,000 7,000 KIDS RECEIVED BREAKFAST IN THE CLASSROOM

HOURS MENTORING KIDS IN AFTER-SCHOOL PROGRAMS

ADULTS ACQUIRED JOBS

TAKE ADVANTAGE OF THE AZ CHARITABLE TAX CREDIT. DONATE AT

vsuw.org/credit

UNI T E A G A IN S T T HE C YCL E .

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TRENDSETTERS — T HE —

1PL0ACEBS TEO WSOTRK NA IN ARIZO

Since this follows the Most Admired Companies issue, it’s appropriate to examine the 10 best places to work in Arizona. Owler used its community’s opinions on employee compensation, leadership and work-life balance to determine the best places to work. On average, revenue at the Top 10 Arizona companies is $192.3 million, employee count is 3,700 and they’ve been around for 36 years.

SheKnows Media

1

LEADERSHIP: Philippe Guelton, CEO BACKGROUND: SheKnows Media is a private company founded in

1999 and competes with companies like Refinery29, Vanity Fair and CafeMedia.

Realty Executives

2

LEADERSHIP: David C. Tedesco, CEO BACKGROUND: Realty Executives has a employee satisfaction

score of 98/100, David C. Tedesco has an approval rating of 99.

TurboTax

3

LEADERSHIP: N/A BACKGROUND: TurboTax is a product/brand/service founded in

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ARIZONA CITIES WITH

THE FASTEST COMMUTE TIME

When trying to figure out a place to call home, commuting time is one of the biggest factors that determines where people settle down. The average commute time in Arizona is 25.3 minutes, up 0.7 percent from the latest Census Bureau data of cities with a population of 60,000 or more. The team at HomeArea.com ranked the nine Arizona cities with the fastest commute time:

-1TEMPE 20.9 minutes* -2TUCSON 21.7 minutes* -3SCOTTSDALE 22.9 minutes*

-4CHANDLER 24.4 minutes* -5MESA 24.9 minutes* -6PHOENIX 26.1 minutes*

-7GILBERT 26.9 minutes* -8PEORIA 28.2 minutes* -9GLENDALE 28.2 minutes*

*average travel time to work

1983. TurboTax has a employee satisfaction score of 97.

SkyTouch Technology

4

LEADERSHIP: Todd Davis, CEO BACKGROUND: SkyTouch Technology was founded in 2012. Todd

Davis has an approval rating of 100 among Owler members.

SiteLock

5

LEADERSHIP: Neill Feather, president BACKGROUND: SiteLock is a private company founded in 2008 and

competes with companies like Cloudflare, Array Networks and Elastica.

Global Patent Solutions

6

LEADERSHIP: David Odland, co-founder and CEO BACKGROUND: Global Patent is a private company founded in

2005 and competes with companies like Legal Files, Bridgeway and Abacus.

Magellan Health

7

LEADERSHIP: Barry M. Smith, chairman and CEO BACKGROUND: Magellan Health is a public company founded in

1969. Barry M. Smith has an approval rating of 96.

Import Genius

8

LEADERSHIP: Michael Kanko, co-founder and CEO BACKGROUND: Import Genius is a private company founded

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POTENTIAL

Considering asking the boss for a raise? To help you assess the chances of a bigger paycheck, finder.com analyzed data from the Bureau of Labor Statistics to uncover the careers most likely to provide pay increases. Here are the Top 10 jobs with the biggest pay increase potential, with the median salary in 2017: 1 Veterinarians, $95,680 2 Surveying and mapping technicians, $57,668 3 Producers and directors, $77,428 4 Financial clerks, $46,904 5 Emergency medical technicians and paramedics, $51,168 6 Meeting, convention and event planners, $56,160

Isagenix

7 Food processing workers, $35,152

and competes with companies like Vemma, Nerium and Morinda.

Discount Tire

LEADERSHIP: Michael Zuieback, CEO BACKGROUND: Discount Tire is a private company founded in 1960

and competes with companies like Myers Industries and Tire Pros.

8

BIGGEST PAY RAISE

in 2006 and competes with companies like Panjiva, PIERS and The Datamyne.

LEADERSHIP: Travis Ogden, CEO BACKGROUND: Isagenix is a private company founded in 2002

10

JOBS WITH THE

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8 Parts salespersons, $40,872 9 Counter attendants, cafeteria, food concession and coffee shop, $23,920 10 Logisticians, $63,960

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TRENDSETTERS

WHAT ARE

MOUNTAIN VIEWS REALLY WORTH?

How much value does a mountain add to a home? The Hill Group of Coldwell Banker Residential Brokerage answered that question in their study, “What’s That Mountain Worth?”

“I learned very early on as an agent that mountains matter to both buyers and sellers, especially in the greater Phoenix area” said Kirsten Hill, co-founder of The Hill Group.

But one question remained: How much value does a mountain add to a home? Here’s what they found:

CHANDLER MANUFACTURER UTILIZES ROBOTS WITHOUT SACRIFICING ANY JOBS Chandler manufacturer Zippertubing’s usage of collaborative robots — ones that work alongside humans, also known as “cobots” — has enabled the company to save 32 percent of its labor costs by automating tasks that used to be done manually.

But unlike a lot of the news reports appearing lately, no one lost their jobs. Instead, people that used to be responsible for those dull and sometimes dangerous tasks are now working higher up the chain, focusing on parts of the business that are not only more challenging, but also more interesting.

Zippertubing implemented Universal Robots’ UR5 cobot to increase output, streamline process, and improve quality.

By doing so, the company has gone from having some product returns to now zero defects on parts produced — saving costs involved in having to reproduce products and send returns back, while maintaining the company’s reputation as one that consistently puts out quality products.

CAMELBACK MOUNTAIN

PIESTEWA PEAK

RED MOUNTAIN

(elevation: 2,707 ft) On the mountain: $1,701,971 Off the mountain: $1,160,758

(elevation: 2,612 ft) On the mountain: $945,457 Off the mountain: $885,838

(elevation: 2,832 ft) On the mountain: $376,676 Off the mountain: $322,708

MUMMY MOUNTAIN

SOUTH MOUNTAIN

MCDOWELL MOUNTAIN

(elevation: 2,264 ft) On the mountain: $1,881,901 Off the mountain: $1,670,106

(elevation 2,690 ft) On the mountain: $316,684 Off the mountain: $252,188

(elevation: 4,057 ft) On the mountain: $1,368,790 Off the mountain: $747,203

ARE WORK FRIENDS REALLY

?

According to a new study, most workplace friendships stay at the office.

Olivet Nazarene University surveyed people across 21 industries to see who has the widest (and narrowest) circles of confidants at work: • 71 percent don’t consider any co-workers “best friends.”

• Only 15 percent of co-workers are considered “real friends.”

• Barely half of people feel comfortable talking to coworkers about their love life or health issues.

INSIDE PUBLIC ACCOUNTING’S S TOP 10 FIRM

Inside Public Accounting has been ranking and reporting on the largest public accounting firms for nearly three decades. Here are its Top 10 firms for 2018: 1 Deloitte 2 PricewaterhouseCoopers 3 EY 4 KPMG 5 RSM US 6 Grant Thornton 7 BDO USA 8 Crowe 9 CLA 10 CBIZ & MHM

WITH 9 EVENTS, AZ BIG MEDIA GETS YOU GET IN TOUCH WITH THE WHO’S WHO OF ARIZONA

7,244+ annual attendance 84% of business executives say they rely on in-person networking events local & statewide business networking 85% of attendees build a strong & meaningful business relationship in an azBIGmedia event

602.277.6045 azbigmedia.com

CEO SERIES cultivate a diverse and talented workforce.

This year marks our 30th anniversary, and in a constantly evolving industry like this, it’s remarkable that Insight is not only surviving but thriving. To transform a small start-up in Tempe into a $6.7 billion global enterprise has called for several pivots over the years to maintain relevance – we’re a prime example that agility, especially through a scalable IT ecosystem, is an essential survival skill in business.

GREAT INSIGHT

Ken Lamneck has helped transform Tempe start-up into a $6.7 billion global enterprise

By MICHAEL GOSSIE

K

en Lamneck doesn’t believe in settling for the present. He is fascinated with the future and technology and the way each inspires the other. That interest and vision has driven Lamneck from his time at West Point Military Academy to his current role as president and CEO of Tempebased Insight.

Az Business talked with Lamneck about how he’s helped build a tech titan in Tempe.

Az Business: What do you enjoy most about your work?

Ken Lamneck: The most enjoyable aspect of working at Insight is the people. We are fortunate to have so many talented and passionate teammates who we get to work with every day. Our business is built on developing meaningful connections with organizations of all sizes and from across all industries to help them run smarter. That starts with the tight-knit relationships within our own walls, where we’ve grown into a Fortune 500 provider of intelligent technology solutions yet still maintain the personable approach of the small, homegrown business we started as here in Tempe in 1988.

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PHOTO BY MIKE MERTES, AZ BIG MEDIA

KEN LAMNECK: “Technology is evolving

at exponential rates and the expansion and accelerated growth of IT companies in Arizona has moved rapidly along with those advancements,” says the president and CEO of Insight. “It’s really put the state on the map in terms of technology hubs in the United States.”

AB: How has Insight evolved during your time with the company?

KL: Insight has transitioned very nicely from a purely intermediate role of hardware/software reseller into a fullservice system integrator solving complex business challenges. We actively look for growth opportunities like our recent acquisition of Cardinal Solutions that expanded our innovation capabilities into one of the industry’s most robust for digital transformation. Additionally, we have become more global in our offerings (operating in 20 countries). We’ve evolved to design, integrate, deploy and manage IT infrastructure and cloud solutions that help our clients maximize their technology investments and create meaningful experiences for their employees and customers.

AB: What are your goals for Insight over the next decade?

KL: Technology is moving faster than most people realize. From connected AB: What strengths did you bring to Insight? farms to smart cities, which Phoenix is KL: I have always focused on a few areas really exploring, tech is taking over, and in my career. The first is servant leadership, that impacts business and public policy in profound ways. Yet in our 2018 Insight second is passion for clients and third is operational expertise. As a former military Intelligent Technology Index, 87 percent of IT decision-makers said they’re struggling officer, my leadership style was shaped to adapt to innovation initiatives. So while early on by the tenet that you lead by everyone and everything increasingly example and empower others to perform become connected, businesses strain to to the best of their abilities. It’s the same keep pace even as most want to think of philosophy we bring to our clients – themselves as a technology company at putting people first and helping them heart. Through our acquisitions in the optimize their talent and the outcomes last decade, we’ve positioned ourselves they can achieve through innovative, technology-driven approaches to business. to address those issues in the decades to come. We want the brightest minds in AB: Why is Arizona a good place for Insight technology to consider Insight a best place to work or to partner with as we grow and to call home? add value to our clients. Ultimately our KL: We’re fortunate to have grown up goal is to help organizations invest wisely in Arizona. It’s a terrific place to live for in technology to run smarter today while our teammates and being based in one of the nation’s largest cities has allowed us to transforming for the future.

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HEALTH

Rehab boom Serene landscapes and effective facilities make Arizona an oasis of healing for those seeking recovery from mental health issues

By ALYSSA TUFTS

T

he majestic views of the Grand Canyon, an abundancy of intertwined landscapes of the Coconino National Forest in Flagstaff, luxury resorts beckoning you to stay and weather that favors recreational outdoor activities year-round — Arizona is a desert oasis to residents and travelers alike. Recently, Arizona has become a destination for celebrities — including Harvey Weinstein, Tiger Woods and Kevin Spacey — who have found themselves in hot water and traveled to Arizona for treatment at one of the state’s many highlyregarded centers.

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tourism Since Chris Cohn, founder and owner of Scottsdale Recovery Center, created the facility in 2008, it has become a premier drug and alcohol treatment center in Arizona with highly trained professionals that provided top-notch care for about 550 people in 2017.

“I determined that there was a need for a strong and passionate drug and alcohol recovery program in Scottsdale,” Cohn says. “I filled that void by hiring the best, experienced therapists I could find … and I let them do what they’re best at, and that’s creating incredible drug rehab programs.”

Scottsdale Recovery Center assists people in the healing process through diverse programs that help people have longterm success with sobriety — in part to some therapists who are in recovery as well, a few with 20 or 30 years of sobriety, Cohn says.

“They’re not just here to get a paycheck,” Cohn says, “it’s because they’re truly passionate about helping people with their addiction and giving them lifelong sobriety.”

TARGETING DEMOGRAPHICS The center has two programs for different age groups — one for ages 18 to 35 and another for 35 and older, which Cohn says they designed because people tend to feel more comfortable with others their own age, which creates a more relaxed environment in drug rehab programs.

These programs are unique to Scottsdale Recovery Center and the environment and program is tailored toward each demographic. They help young adults create solid foundations designed to minimize the likelihood for future relapse while increasing quality of living within sobriety on many levels. They also have structured programs for men’s and women’s recovery that include guided meditation classes, recovery-based yoga, fun and adventurous outings and social events for effective treatment on clinical, physical and spiritual levels.

Cohn says he is most proud of their trauma PTSD program, which has shown incredible results with EMDR (Eye Movement Desensitization and Reprocessing), which treats PTSD, addiction, trauma and stress by rewiring the neuropathways in the brain.

According to a survey published by the Center for Behavioral Health Statistics and Quality, 41,929 clients received treatment at 341 treatment facilities in Arizona in 2017, making Arizona 12th highest in the country for the number of patients treated.

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HEALTH

Cohn says he thinks discretion is a key reason people and celebrities seek and receive treatment in Arizona.

“There isn’t this starstruck feeling when they come here,” he says. “I understand they deserve the same amount of privacy, respect and confidentiality that everyone else does and we take that really seriously.

“It’s great for people who come from out of state because they can get out of their home environment and into a place where they don’t know a lot of people,” Cohn continues. “We can get them focused on their sobriety and it’s great for them to get a change of pace to reset their mind and get their feet on the ground.”

Chris Cohn

Jaime Vinck

Aaron Wilson

SECRET OF SUCCESS Part of Sierra Tucson’s success is credited to its multidisciplinary approach, where everybody who is admitted to the THE ARIZONA AIR residential program is assessed by a team of experts, including a That feeling of solace in the Arizona air is reflected by Sierra physician, psychologist, therapist and often a nutritionist, says Tucson, which had 83 percent of its residents come from out of Aaron Wilson, chief medical officer, Sierra Tucson. state in 2018 and 85 percent in 2017.

“The team of providers will meet with them and based on that “We are located in the Catalina Mountains and so our views are information, tailor the treatment to them, and that is the model absolutely incredible and there is a lure associated with this land we subscribe to,” he says. “Because the rubber stamp approach to and that we are built on sacred land,” says Jaime Vinck, CEO of treatment doesn’t work, we create an individualized treatment Sierra Tucson. “When people come to the desert seeking healing, plan to make sure their needs are addressed.” often times it is associated with depression. With addiction, Through their program, they aim to reduce a trend that Wilson there’s physical pain that goes along with your emotional calls the “revolving door of treatment,” where people receive pain and the desert can be an extremely healing, nurturing treatment at multiple facilities during their recovery because experience.” underlying problems might not have been addressed previously.

Cohn says the state has a reputation for its healing.

“The sustainability of the change happens in a place like Sierra “I think that Arizona’s history deeply supports healing, I Tucson because we look at outcomes to measure that progress think beginning with the centuries of Native American tradition and we delve into the root of the problem, so looking at trauma, such as herbs and prayers,” Cohn says. “We offer a lot of Native substance abuse, depression, anxiety and grief,” he says.

American-type treatment modalities … we do a lot of holistic This integrated approach to treatment through their Sierra treatments, recovery-based yoga, meditation, equine therapy, Tucson Model involves programs with strong diagnostics, energy healing...a lot of that started here in Arizona with the evidence-based techniques, holistic resident-focused care and Native American traditions that we honor here. I think the emphasizes the involvement of family during treatment for natural surroundings and simple life that Arizona has to offer lifelong success for recovery. is great, and obviously the weather here plays a factor. A lot of In addition to thorough and unique treatment for patients, clients come from the East Coast to get sober for 30, 60 or 90 Sierra Tucson provides support through various programs to days, and the weather is usually pretty great.”

Scottsdale Recovery Center also takes weekly outings to Sedona continue to develop meaningful relationships with patients that help them achieve and maintain sobriety. Sierra Tucson’s and Flagstaff and people can participate in outdoor therapeutic Connect 365 program provides a year of continuous support after activities, which Cohn says is always great for their recovery.

Sierra Tucson’s 160-acre campus and breathtaking views of the treatment with access to a nationally certified recovery coach and a mobile app, which Vinck says is customized to reinforce Santa Catalina Mountains contribute to the healing process in recovery and success with sobriety. Since 1983, Sierra Tucson has good habits patients learned in treatment, such as setting daily intentions, expressing gratitude and holistic wellness including been a world-class leader in residential treatment with dedicated nutrition and exercise tips. staff developing and implementing integrative programs that “We also have a very active and comprehensive alumni yield effective outcomes. program,” Vinck says. “We have an annual retreat in October and Vinck says in the past four to five years, Sierra Tucson has 150-200 people come back. We participate in workshops and they transitioned from being a treatment center for celebrities and people with high net-worth and providing confidential treatment, get to come back to campus, which is that touchstone of where their healing began.” to offering an integrative model of care for many people.

While treatment is a process that takes patience, introspection, “We are also dually-licensed, so we no longer just treat effort, and support from family and friends, people have found addiction, we also treat primary mental health diagnoses,” Arizona to be a sanctuary in the Southwest, a place to heal, Vinck says. “We’re finding many people who are struggling with learn, and have better quality of life and success with long-term depression, anxiety and trauma, and they deserve a place to go sobriety. and heal as well.”

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AB | November - December 2018

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LAW

LAW AND ORDER

Here are the trends and issues that will impact an optimistic legal industry in 2019 and beyond

By MICHAEL GOSSIE

I

f you ask most attorneys, 2019 is shaping up to be another pretty good year.

“I’m bullish,” says Sarah A. Strunk, director and chair of the board of directors for Fennemore Craig. “I’ve never been busier and everyone is eager to do business. There is a level of optimism I haven’t seen since prior to 9-11.”

From economic development to booming business, Arizona’s legal industry is optimistic.

“New opportunities will continue to develop as businesses from California and elsewhere relocate to business and familyfriendly Arizona,” says Michael K. Kennedy, founding partner of Gallagher & Kennedy, which is celebrating more than 40 years in business.

While the world is evolving and innovating at a breakneck pace, the legal profession is in a constant Usain Bolt-style sprint, trying to keep up … but still wearing it’s father’s running shoes.

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AB | November - December 2018

“With the onset of legal software programs, websites and artificial intelligence, the practice of law is becoming more commoditized and technology-based,” says John E. DeWulf, partner at Coppersmith Brockelman. “However, for complex and high-stakes legal work, judgment, common sense, empathy and good communication skills will always be valued in the marketplace.”

Despite all the positive energy, there is one gray cloud in an otherwise sunny sky: the cost of legal services.

“The unavailability of legal assistance to those of modest means remains a fact of life,” says Larry A. Hammond, a partner at Osborn Maledon. “Programs like those at Arizona State University’s Sandra Day O’Connor College School of Law may provide a blueprint for reforms in this area.”

Here are some of the other trends and issues that will impact the legal industry in 2019 and beyond.

IMPACT OF VIBRANT ECONOMY Ari Bai, shareholder, Polsinelli: “I envision the patent industry to be robust in 2019 since innovation never ceases as inventors and companies continually seek novel ways of improving things.”

John L. Condrey, partner, Gordon Rees Scully Mansukhani: “The economy is strong but people are nervous. I expect growth to be slower than it could be for that reason, but still expect growth.”

James Cool, managing partner, Honor Law Group: “A strong economy presents opportunities for businesses to expand and for individuals to broaden their horizons.

Yet, we also live in a world of increasing conflict and complexity. The combination of these conditions leads to a bright outlook for civil litigators like me and promises future opportunities for problem solving.”

Neil M. Alexander

Joseph T. Clees

Amy L. Lieberman

Marc R. Lieberman

Ari Bai

John L. Condrey

James Cool

Judith M. Dworkin, managing partner, Sacks Tierney: “Many Native American tribes have used the revenues generated from gaming to diversify and to support the development of needed infrastructure and community services. These efforts continue to require substantive legal knowledge and skill dealing with non-Indian partners and the federal government.”

Judith M. Dworkin Karen C. McConnell

Karen C. McConnell, partner, Ballard Spahr: “M&A activity has been extraordinary, and I expect the trend to continue at least through (the rest of this year). The changes in the tax laws and lofty valuations have spurred many owners to sell.”

WORKPLACE ISSUES

AGING POPULATION

Neil M. Alexander, shareholder, Littler Mendelson: “The powerful yet disruptive online technologies in service industries are forcing the government to rethink the way it regulates employment relationships.

Local state regulation is on the rise. The new Arizona paid sick time law and medical marijuana requirements materially impact local employers and their rights and obligations.”

Charles L. “Chick” Arnold, elder law and mental health attorney, Frazer Ryan Goldberg & Arnold: “As the Baby Boom generation ages into retirement and our nation becomes more mindful of helping those with serious mental illness, demands for mental health, elder care, and social services will enhance opportunities for qualified attorneys to meet the growing needs of disabled and elderly citizens and their families.”

Joseph T. Clees, shareholder, Ogletree Deakins: “Our employment practice will continue to be robust — regrettably, for employers. Employment and labor law is increasingly high-stakes, collectivized, counterintuitive and inconsistent. And workers are increasingly aware of their rights and willing to assert claims, as the #MeToo movement has demonstrated.”

Alisa J. Gray, shareholder, Tiffany & Bosco: “The industry of probate and elder law practice continues to be strong and I don’t see that changing. People are living longer than ever imagined, requiring flexible and creative approaches to managing resources, as well as creating more awareness of the challenges associated with aging in our modern society.”

Amy L. Lieberman, executive director, Insight Mediation: “More organizations will follow the trend of mediating by putting mediation clauses in the employee handbooks and in their contractual agreements.”

Marc R. Lieberman, senior partner, Kutak Rock: “As more municipalities struggle with unfunded pension obligations, there will be a material increase of municipal bankruptcies, which will materially impair the pensions of thousands of government employees.”

Caleb S. Lihn, founding partner, Thies & Lihn: “The convergence of an increasingly aging population, living longer lives, thus increasing the likelihood for the need for long-term care and life planning with the potential changes to the Medicaid rules in terms of reduced funding and allocation to long term care services. As an Elder Law attorney we want to ensure our clients have everything in place as they age and/ or require care that no longer allows them to live at home. Thus, we will keep a very close eye on changes to Medicaid and the corresponding availability of public benefits to our clients.”

Charles L. “Chick” Arnold

Alisa J. Gray

Caleb S. Lihn

AB | November - December 2018 19

LAW

Kaine R. Fisher

Angela K. Hallier Stephen R. Smith

Robert Erven Brown

Ellis M. Carter

Kendis Key Muscheid

FAMILY LAW TRENDS

NONPROFIT SECTOR

Kaine R. Fisher, partner and director of family law, Rose Law Group: “As Arizona moves closer and closer to legalizing marijuana for recreational use, it will be interesting to see how Family Court judges treat this ground-breaking change in the law when evaluating parental fitness and other best-interest issues.”

Robert Erven Brown, practice group leader, Gallagher & Kennedy: “The US Supreme Court decision in the Jack Phillips cake baker case which originated in Colorado has the potential to impact many of our faith-based ministry clients. The continuing tension between traditional forms of worship and cultural change will continue to impact this sector. The impact of the recent tax reform act on charitable giving is still unknown as of now; many commentators are predicting a significant decline in charitable giving due to the loss of itemized deductions.

Uncertainty surrounding the Ministerial Housing Allowance is also adding to uncertainty in our sector.”

Angela K. Hallier, partner, Hallier & Lawrence: “The divorce industry stays fairly steady during both economic booms and busts.

We are as busy as we’ve ever been with a rush of cases coming in given the good economy. We expect that to continue.”

Stephen R. Smith, partner, Fromm Smith & Gadow: “I expect the field of family law to continue to expand. During the Great Recession from 2009 through 2012, many divorce lawyers struggled as couples chose to remain together for financial reasons. As the economy improved, financial concerns ceased being a reason to remain in an unhappy marriage.”

Adam Baugh

Steven Plitt

Wendy Riddell

Paul M. Weiser

Ellis M. Carter, president, Caritas Law Group: “Tax cuts are likely to lead to budget deficits that will further reduce funding for the nonprofit sector.”

Kendis Key Muscheid, partner, Ballard Spahr: “I believe the legal market will continue to remain fairly consistent with what we have seen in 2018, with the nonprofit sector doing some more consolidation and also ensuring best practices are implemented across organizations.”

William A. Clarke Martha Patrick

Bahar Schippel

REAL ESTATE

OUTLOOK FOR TAXES

Adam Baugh, partner, Withey Morris: “I am excited to see continued success and new peaks in the construction, real estate and land use legal industry. Builder sentiment is strong and optimistic.”

William A. Clarke, member, Jennings Strouss & Salmon: “The current changes in estate tax law have reduced the percentage of taxpayers that are subject to estate taxes to less than 0.1 percent of the overall population. Given the current taxpayer favorable rules, the vast majority of estate planning clients need to focus on doing what is right to secure their families’ future, which is particularly important with blended families.”

Steven Plitt, partner, The Cavanagh Law Firm: “The outlook is good. The real estate market has returned and business is thriving. In turn, the legal market is also growing.”

Wendy Riddell, managing member, Berry Riddell: “It is amazing to see the types of projects coming down the pipeline that we are seeing, and the investment coming into the Valley on a daily basis. People are attracted to the Phoenix metro area because of our incredible quality of life. I think you are going to see more companies choosing to relocate to the Valley, and more continued economic growth.”

Paul M. Weiser, managing shareholder of the Scottsdale office, Buchalter Nemer: “I remain cautiously optimistic about the real estate industry heading into 2019. I don’t see the speculative building that can lead to very high vacancy rates, but I do see strategic growth that will allow the real estate industry to continue to serve a growing population.”

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AB | November - December 2018

Martha Patrick, shareholder, Burch & Cracchiolo: “Cuts to the IRS budget and limits on federal hiring will have a substantial impact on the ability to get things done at the IRS.” Bahar Schippel, partner, Snell & Wilmer: “Congress enacted the most sweeping set of tax law changes in 30 years. It is anticipated that these changes will stimulate certain segments of the economy, bringing with it the need for legal services, and tax planning. I anticipate 2019 to be a busy year.”

AB | November - December 2018 21

LAW EVOLVING LEGAL INDUSTRY Shawn K. Aiken, attorney, Aiken Schenk Hawkins & Ricciardi: “The speed of change requires every lawyer and law firm to invest in training for themselves and staff. And, opportunities abound.”

Hilary L. Barnes

Steven N. Berger

George C. Chen

D. Lewis Clark, Jr.

Shawn K. Aiken

IMPACT OF TECHNOLOGY Hilary L. Barnes, member, Allen Barnes & Jones: “The legal world will continue its rapid technological evolution, and law firms must continue to adapt to meet their clients’ changing expectations.

Also, rising interest rates will create more opportunities for bankruptcy counsel.”

Steven N. Berger, shareholder, Engelman Berger: “The legal industry continues to react to changes in technology, client expectations, emphasis on efficiency and responsiveness.

Firms must be able to meet these challenges and demonstrate that they understand the needs of the modern business client.

Increasing levels of business activity suggest busier times ahead for lawyers.”

George C. Chen, partner, Bryan Cave: “Patent litigation reform has had — and will continue to have — a large impact on the intellectual property sector of the legal industry. Recently, there have been 30 percent fewer patent lawsuits filed.”

D. Lewis Clark, Jr., office managing partner, Squire Patton Boggs: “We certainly live in interesting times in the legal profession.

The regulatory changes our clients face under a new administration, the increased globalization of business and commerce, and the continual and fast-paced advances in technology all present exciting challenges for 2019.”

Richard A. Friedlander

John Hay

Nicole Stanton

HEALTHCARE AND INSURANCE

Edward O. Comitz

Michael A. Ludwig

22

Edward O. Comitz, member, Comitz | Beethe: “Insurers are issuing new private disability policies that are carefully crafted to make it much more difficult for policyholders — particularly professional policyholders — to collect benefits. These new provisions restrict coverage in ways that can dramatically impact professionals who need to file disability claims, requiring much more vigilance and advocacy than previously required.”

Michael A. Ludwig, partner, Jones, Skelton & Hochuli: “The insurance defense industry continues to thrive but has become much more competitive. Insurance companies’ efforts to watch the bottom line has reduced the profit margins for the law firms who do their work. Firms are forced to run leaner and that can mean working more hours for the same or less pay. With that said, there will always be lawsuits and there will always be the need for attorneys to defend them.”

AB | November - December 2018

Kenneth Van Winkle, Jr.

Judith K. Weiss

Richard A. Friedlander, member, Dickinson Wright: “Expect to see continued consolidation of law firms and more legal work will be moved in-house. Cybersecurity has and will become critical for law firms to adopt policies to implement defenses to protect stored data from cyberattack. I expect key growth areas to relate to infrastructure projects, mergers and acquisitions, project finance and cybersecurity.”

John Hay, chair of the arbitration section, Gust Rosenfeld: “The cost of legal services is becoming a greater barrier to the use of legal services by those who need them, both individuals and businesses. Even businesses that know they need the advice of lawyers are increasingly unwilling to seek it because of its cost. The legal profession will need to change its method of charging for legal services — and perhaps its methods of providing them — or it will become increasingly irrelevant.”

Nicole Stanton, partner, Quarles & Brady: “For the first time, four generations are working together. Law firms will be faced with balancing a generation gap of 50-plus years. Domestic law firms will also expand across borders, collaborating and forming intercontinental mergers. Need for improved efficiency will continue with clients demanding better results using fewer resources.”

Kenneth Van Winkle, Jr., managing partner, Lewis Roca Rothgerber Christie: “The legal industry needs to more aggressively embrace change — in technology, in practice management, and in meeting the demands of our clients. To be truly successful we must also embrace and understand the changes our clients are facing, so we can more thoughtfully help them address their legal needs.”

Judith K. Weiss, partner, Perkins Coie: “I see several persistent challenges. How are firms able to satisfy clients’ demands for more inclusive and diverse teams? What value-adds will firms provide to inspire and reward client loyalty? Will firms develop more innovative, less complex pricing models so clients can see the real value a law firm provides?”

AB | November - December 2018 23

HOLIDAY PARTY PLANNING

Mistle-NO Here’s how to plan a corporate holiday party in the wake of #MeToo

By BROOKE MILLER

A

s the holiday season rapidly approaches, the last thing a company wants is for its annual soiree to become the next face of the #MeToo movement. With the current climate, businesses are scrambling to determine how to avoid party pitfalls or whether they should even stage the shindig at all.

“The employers’ expectations of behavior should be spelled out and distributed to staff ahead of time,” said MaryLynne Christman, chief eventor at Collaborative Event Management.

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AB | November - December 2018

Human resources experts say it’s also imperative in today’s climate to take a hard look at the culture of your workplace. What is the atmosphere of the office like?

Legal and human resources experts agree that setting firm guidelines is imperative when it comes to minimizing risk and accentuating the purpose of off-site corporate functions.

The #MeToo movement has been a significant factor in creating discussions about whether companies should just ax holiday parties altogether. The more #MeToo is talked about, the more real it becomes. Sober or drunk, by mistake or on purpose, experts say sexual harassment in the workforce is a matter that should be handled seriously and with extreme care. But the best way to handle it is to prevent it before it happens.

PARTY PLANNING In light of #MeToo, Robert Reder, managing partner of Blythe Grace, says there are three things employers should do to reduce the risk of liability from holiday parties: 1. Update your employee handbook to include zero tolerance policies for discrimination or harassment. “There are certain workplace offenses where an employer should proceed directly to termination after an investigation of the circumstances of the incident,” Reder says. “Discrimination and harassment are two of those circumstances.”

2. Employers should have an employment attorney or human resources specialist provide harassment training to all employees.

“This training is certainly an investment by the company, but can prevent workplace misconduct,” Reder says.

3. Employers should designate an employee to refrain from consuming alcohol so that they may look for anyone who is intoxicated. “This employee can watch to ensure that employees are not getting out of hand, where misconduct can occur,” Reder says.

Human resources experts say it’s also imperative in today’s climate to take a hard look at the culture of your workplace.

What is the atmosphere of the office like? How do your colleagues interact with one another? Would you consider your workplace professional or more lax? The success of the holiday office party mirrors how controlled the office is as well as the dynamic between associates.

TO CANCEL OR NOT? Hosting regular training programs and seminars to clarify expected behavior is crucial in eliminating the “lack of knowledge” excuse at a holiday party. But proper employee behavior should be expected year-round. Experts say the rules should be both consistent and pertinent.

So, what happens if you are uncertain about the outcome of the party? What if you’re unsure about the level or amount or training you’ve done? Do you still try to stage an epic party, or do you minimize potential harm by vetoing it altogether?

“Eliminating the parties or reward system tears down what I think would be the heart and soul of the company,” says Jacque Duhame, owner of Duhame Event Group. “If people are not able to be rewarded, it could ruin morale.”

According to a survey by Challenger, Gray & Christmas, plans to host an office party dropped roughly 5 percent from 2014 to 2017. Not surprisingly, the number of parties that served alcohol decreased from 62 percent to 49 percent from 2016 to 2017.

“If consumption is limited, it solves most problems,” said Neil Alexander, shareholder at Littler Mendelson.

Whether alcohol is part of the equation or not, eliminating parties to reduce risk also eliminates the opportunity for employees to prove they can act responsibly, strengthen internal relationships, bond as a team and speak informally with coworkers to improve relationships. Office celebrations are the perfect excuse to let loose and do those things.

The key, experts say is to make sure you don’t promote too much letting loose.

CHEERS OR NO CHEERS? Start with the minor details: Cut down the mistletoe and review the playlist. Decide whether you want to provide a dance floor or if you want to promote a function centered around mingling and networking. Don’t make the gathering mandatory, as that induces obligation, and make note of specific dress attire.

Reward the designated drivers with Uber gift cards of minimal value and limit guests to a plus one.

Which brings us back to the riskiest party pitfall: Alcohol.

Alcohol is blamed for being the root of most potential liability problems, especially at professional functions. With a lack of limitations on alcohol intake, the lines between proper and improper conduct can easily become blurry.

“Consider limiting the amount of alcohol that can be consumed by any attendees at the event,” says William Richards, founding member of Baskin Richards.

Richards advises a ticketing system that limits the number of drinks a single attendee can consume. This kind of limiting system has been increasingly adopted by companies as a way of moderating the levels of drinking. Additionally, hiring a AB | November - December 2018 25

HOLIDAY PARTY PLANNING

Neil Alexander

MaryLynne Christman

Jacque Duhame

Robert Reder

professional to take care of this part of the company’s business versus an internal employee is more reliable and appropriate when cutting people off.

“A professional event planner will have a trained staff, event insurance and will be able to keep an eye on the event,” Christman says. “Having a volunteer or staff member serve drinks who is not Title 4 Beverage Service trained leaves the door open for over serving and/or serving minors.”

Alcohol can even cause problems for employers after the party is over.

“Arizona employers who serve employees alcohol at parties and do not take reasonable steps to ensure they do not drink and drive may be liable for any damages that occur as a result of the intoxicated employee’s actions under Dram Shop laws,” Reder says.

THE GUEST LIST When it comes to a corporate holiday party, the optimistic figure of speech, “the more the merrier,” does not always apply, especially in the presence of alcohol. Even if you take the steps to instill ethical guidelines of behavior within staff members, you have to be cognizant of the fact that an employee’s guest may not

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AB | November - December 2018

William Richards

Jamie Seeker

abide by these agreements.

“Mixing such uninformed participants with alcohol creates the possibility of inappropriate sexual behavior instigated against employees or guests by non-employees,” Richards says.

The company needs to be mindful that allowing guests to attend the holiday office party brings uncertainty to the outcome of the gathering. Furthermore, disclosing this risk to the employees themselves serves as a warning and statement of awareness.

“I would definitely make sure to set expectations and rules about how people should interact with each other, and remind them it’s not only the employee of the company but the spouse or significant other that can also be a harasser,” Duhame says.

For employees, be selective when deciding who to accompany you to your holiday office party. And employers need to disclose the concern about unfamiliar attendees. Create a setting with appropriate background music and a contained, visible room to eliminate hazardous scenarios from arising.

“Setting the tone as ‘we don’t tolerate sexual harassment’ can drastically reduce legal liability,” says Jamie Seeker, founder and principal consultant at Seeker Solution.

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27

HOLIDAY PARTY VENUES

unique venues to book a last-minute holiday party

By MICHAEL GOSSIE

T

he economy is humming along. You’ve had a phenomenal year. Things have been so busy that the office holiday party was put on the back burner and still needs to be planned.

Never fear. Even if the office holiday party is something that slipped your mind, there are plenty of dynamic Valley venues still available to create a memorable holiday event for employees.

Here are 20 hot spots where you can celebrate your company and book a last-minute holiday party or an off-site event to boost company morale.

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AB | November - December 2018

Butterfly Wonderland OPTIONS: Host your enchanting holiday party amongst beautiful tropical butterflies, rainforest reptiles and tropical waters at Butterfly Wonderland. Perfect for smaller groups, Butterfly Wonderland will provide a unique experience with lasting memories. Butterfly Wonderland offers an intimate smaller venue and the guests can even enjoy a special visit by reptile or creepy crawly critter for an additional fee.

To book: 480-800-3000, ext. 210 or events@butterflywonderland.com Cold Beers & Cheeseburgers OPTIONS: Cold Beers & Cheeseburgers is the perfect friendly, neighborhood spot for holiday parties. Their All-American menu features their award-winning, half-pound patties, as well as more than 150 beer choices, wines and more. Top it all off with more than 30 HD TVs, sports galore and that makes for one juicy event.

To book: alecia@sq1c.com Dave and Buster’s OPTIONS: Book your corporate holiday party

— featuring chef-crafted buffet, private and semi-private rooms and more — today at Dave and Buster’s in Glendale, Phoenix or Tempe and get 20 percent off. There is still space available throughout November and December for up to 1,900 guests.

To book: daveandbusters.com/holiday Four Seasons Resort Scottsdale at Troon North OPTIONS: Delight your holiday guests with the beautiful setting, creative menus and outstanding service of Four Seasons Resort Scottsdale. The casual Proof Canteen, lively Talavera restaurant and fully customizable event space are available for parties of 12-300 guests. Plus, non-overnight guests enjoy complimentary valet parking.

To book: 480-513-5266 or keisha.bergan@ fourseasons.com

Butterfly Wonderland

Grimaldi’s Pizzeria OPTIONS: If you are looking for a place

to host your party, Grimaldi’s Pizzeria is the perfect place for almost any occasion. For food, each banquet room is buffet style serving. The sizes of the rooms vary at each location, so be sure to include party size when making a reservation.

To book: events@grimaldispizzeria.com

Hotel Valley Ho OPTIONS: Wow your guests with one-of-akind spaces like the indoor-outdoor SoHo Ballroom and the Sky Line Rooftop, which offers panoramic views of the city and Camelback Mountain. This iconic hotel in Old Town Scottsdale combines mid-century style with modern amenities and incredible catering options. Special rates are available Sundays through Wednesdays.

To book: 480-248-2017 or hotelvalleyho.com

Hatter and Hare OPTIONS: Hatter and Hare is the perfect place for your eccentric holiday party.

This is an adult-themed Alice in Wonderland bar. Book your personal or corporate party in the decked-out dining room or garden-themed patio.

Tea parties are available for groups of 10-100. Come fall down the rabbit hole.

To book: 480-865-2447 or alyssaz@ghfconcepts.com Hermosa Inn & LON’s OPTIONS: Unique event spaces will help

you create the most exquisite holiday celebration for groups from 10-60 guests in an exceptional location. Private events at this legendary boutique hideaway are enhanced with globallyinspired Arizona fare from LON’s, paired with wines from an awardwinning wine list.

To book: 602-792-1914 or hermosainn.com

Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch OPTIONS: ‘Tis the season to book your holiday party at Hyatt Regency Scottsdale.

Amidst flowering cactus and framed against the majestic McDowell Mountains, this is the place to throw your event.

Whether you are looking for intimate restaurant space or a large ballroom, give the events manager a “jingle” because discounts are available.

To book: 480-444-1234 or salesscott@ hyatt.com ISM Raceway OPTIONS: A $178 million upgrade has made

ISM Raceway a year-round destination and the perfect place for your party — from intimate groups of 20 all the way up to large groups of 2,000 or more and everything in between. ISM Raceway has several options to get your guests’ hearts racing.

To book: gpowers@ismraceway.com or 623-463-5400 AB | November - December 2018 29

HOLIDAY PARTY VENUES OdySea Aquarium

K1 Speed Jennifer’s Catering OPTIONS: Whether you’re planning an intimate party for executives or a lavish gala for thousands, Jennifer’s personalized menu planning and prompt 24-hour proposal turn around time make the company a standout for businesses looking to book a party.

To book: 602-579-5327 JW Marriott Camelback Inn Resort & Spa OPTIONS: This legendary, AAA Four

Diamond property, nestled between Mummy and Camelback Mountains, glistens with historic Arizona charm during the holiday season and offers an array of indoor and outdoor venues with private patios, outdoor fireplaces and garden terraces with spectacular mountain views. Lincoln, a JW Steakhouse, Rita’s Kitchen and Camelback Golf Club offer private dining options and are available for full restaurant buyouts or small private parties. The resort’s new Paradise Ballroom can accommodate larger corporate functions ranging from 50 to 1,500 people.

To book: 480-367-6176 or mayra.oharris@ marriott.com (restaurants); 480-948-1700 or anitra.duran@marriott.com (sales) K1 Speed OPTIONS: For an exciting holiday party your guests will be raving about long after it ends, look no further than K1 Speed. The indoor all-electric go-karting facility offers two private meeting spaces or the ability to rent out the entire location. Perfect for group sizes from eight to more than 100, with catering options available.

To book: 855-517-7333

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AB | November - December 2018

The Back Office at The Camby Marcellino Ristorante OPTIONS: In Italy, gatherings always involve

food lovingly prepared and beautifully served. Marcellino Ristorante’s goal is to create a stress-free, unique and memorable event, tailored to your needs. Private, semi-private, at the bar or on one of two patios. Marcellino can accommodate small or large groups up to 80 guests.

To book: 480-990-9500 Mountain Shadows OPTIONS: Treat your guests to incredible

Camelback Mountain views from the Paradise Ballroom terrace, lawn and rooftop deck. Enjoy contemporary holiday décor and ask about the S’mores station and Jingle Juice. Discounted menus are available for Sunday and Monday parties, with a complimentary room night for planners.

To book: 480-624-5413 or mountainshadows.com OdySea Aquarium OPTIONS: Host an enchanting holiday party while gazing at fascinating sea life as OdySea Aquarium will provide a unique experience and lasting memories. OdySea offers a variety of unique venue space options and the guest list can even include a penguin or otter.

To book: 480-291-8237 or events@ odyseaaquarium T. Cook’s at Royal Palms OPTIONS: Enjoy lunch in one of this iconic

resorts private gardens, surrounded by beautiful greenery and flowers. A savory

three-course lunch under Royal Palms’ Tuscan umbrellas will create a memorable occasion for you and your colleagues for about $50 per person.

To book: 602-977-6461 The Back Office at The Camby OPTIONS: Intimacy defines The Back Office, hidden behind a door within The Bee’s Knees cocktail bar at The Camby. Holiday celebrations, exclusive gatherings and groups of up to 40 can happily multitask as the boardroom table transitions to a pool table and the buffet table becomes a shuffleboard game. A sophisticated and great choice at 1,200 square feet, The Back Office is perfect for your next holiday party.

To book: 602-468-0700 Tomaso’s Italian Restaurant OPTIONS: Tomaso’s has been serving highend classic Italian cuisine for more than 40 years, making the restaurant an iconic destination for all celebratory occasions.

Tomaso’s can accommodate smaller parties up to a full buy-out of 207 people. The restaurant boasts variety of dining spaces including the fully-private “Serena Room” and the semi-private “Cove.”

To book: 602-956-0836 Twin Peaks OPTIONS: Twin Peaks offers guests semi-

private spaces within the restaurants or private areas on the patio. Twin Peaks features a great selection of appetizers, sandwiches, burgers and the famous wings, as well as a variety of cocktails, beer and non-alcoholic drinks. There are three Phoenix Twin Peaks locations. Reach out to the individual location to book an event.

To book: 602-954-8946 (Camelback), 480-483-0921 (Scottsdale), 623-233-5700 (Glendale)

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6000 E. Camelback Road | Scottsdale, Az 85251 480.214.8000 jgsteakhousescottsdale.com

MARKETING

UNDER THINK IT Here’s why strategy needs to get less smart to be more effective

C

ompanies of all sizes have made major investments in strategy over the past five years. In an effort to outflank competitors, each company has stockpiled talent to think before they shoot.

Make no mistake, strategy personnel must have influence over their organization or customers to be effective.

To guide them. To help make it clear what they should do. And this is simply impossible if they don’t understand what you’re talking about.

Strategy is just full of five syllable words. Why? We all want to look and sound smart to our co-workers and clients. Unfortunately, many mistake jargon filled diatribes for sound strategic insight. (“Omnichannel interdisciplarity,” anyone?) But big buzzwords don’t just undermine thinking, they keep people from understanding what strategy is.

It’s not coincidence that the most widely used strategy frameworks are usually dead simple. Keep things simple in your language and in your approach. First, name the problem. Surprisingly, people tend to use more and bigger words when they are avoiding direct subjects or confrontation.

Call out the problem plainly.

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AB | November - December 2018

accomplishing it. Or worse, have identified a problem but not what is possible as a Marketing result of fixing it. Be honest about the desired outcome. What do you hope to Next, include nothing but truth. Be honest. happen as a result of the strategy?

In print this is straight forward and in Know that the root cause of the practice nearly impossible to do. No challenge challenge is not the challenge itself. Often can be overcome without first clearly times, this is where strategy falls down. understanding what it is. Don’t let politics Mistaking the visible challenge for the or personal feelings hold back honesty about problem to be solved breaks focus. Use problems that need to be addressed. Choose the five whys or another framework to go the issues that can best be affected. identify why things are happening the way People pay for strategy, but they want they are. a solution. A clear solution. Present the The best way to deliver big ideas is to idea that will solve the problem sooner make them easy to understand; not to hide than later. Then add clarity. Too often, them in a pile of jargon. Make it sound slide decks are hours of set-up content simple. Make the information easy for culminating in a presentation of a solution. people to share later. Under think it. In an Instead, provide the idea up front, and effort to sound smart, we may be turning validate it afterwards. our clients and co-workers off of the course Make it crystal clear by using words people you have worked so hard to set. can repeat. Remember, the person hearing the strategy almost always has to communicate it Adam Pierno is chief strategy officer for Santy. to someone else. If they can’t understand, they He not only puts his innovative approach to strategy into action for major national brand like cannot speak it on your behalf. The stories Delta Air Lines, but he also is mentoring great we retell the most tend to be the simplest. up-and-coming industry talent. In his recent Complexity breaks understanding. book, “Under Think It – A Marketing Strategy Often, companies see a goal but not Guidebook for Everyone,” Pierno maps out a game plan for approaching client strategy. the hurdles preventing them from

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AB | November - December 2018 33

TECHNOLOGY

REGULATORY

SANDBOX will help Arizona’s financial technology sector thrive

Steven G. Zylstra Technology

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AB | November - December 2018

A

rizona’s financial technology (FinTech) sector has become increasingly prominent over the past few years.

While Arizona is no stranger to being an innovator in technology, our state has made a unique push to solidify its leadership in FinTech through creation of a regulatory sandbox.

Arizona is the first state in the nation to enact a sandbox for FinTech companies, allowing the United States to join nations like the United Kingdom, Singapore and Australia in fostering FinTech innovation. This sandbox, which became effective Aug. 3, provides Arizona companies with a framework that enables them to thrive. FinTech innovations are altering business models to prepare for the future, and our state is helping to lead the change.

Arizona’s FinTech sandbox allows anyone from a single entrepreneur to an established company to temporarily release products for testing purposes without a high cost burden. This helps innovators move forward without the weight of legal fees, compliance fees and other monumental expenses that would otherwise be required to participate in the market. Because FinTech evolves more rapidly than most other industries, allowing these companies to test their products outside traditional confines is critical to their success.

While this regulatory sandbox grants FinTech companies a higher degree of freedom, there are still compliance standards that should be mentioned. Participating companies are subject to Arizona’s jurisdiction, must provide the Attorney General’s office with detailed product information and can only have access to the sandbox for up to 24 months after their approval. However, an extension for up to one additional year can be filed through the Attorney General’s office if needed. Companies can also expect to receive limitations on the number of people who can participate in a particular sandbox agreement and on the amount of loans that can be issued.

Earlier in October, Omni Mobile became the first participant approved for Arizona’s FinTech sandbox. The company leverages blockchain technology in the form of a digital wallet to promote quicker and more cost-effective payment transfers. Because of the sandbox, Omni Mobile will be able to test its platform by handling guest payments at Westward Look Wyndham Grand Resort and Spa in Tucson. The goal of the sandbox is to allow

FinTech companies like Omni Mobile and others to better transition from prototyping to production by giving them the space necessary to move forward.

While Arizona’s sandbox is still in its infancy, an increasing number of local companies are incorporating FinTech into their innovations. Acronis recently announced that it is doubling its research and development investment from $10 million to $20 million to focus more heavily on blockchain technology.

Additionally, there’s been a shift in companies in cloud service, insurance and finance to focus on blockchain as well. With companies beginning to add blockchain to their operations, the need for a regulatory sandbox will become even more apparent.

Even though blockchain technology is a dominant force in FinTech, the state is also home to companies operating in other areas of the sector. Companies like BillingTree, InfusionSoft, PayTech and AmCheck are dedicated to applying FinTech to improve payroll, credit transactions and customer relationship management (CRM) software. Similarly, another key opportunity is through the Internet of Things, which is helping to power FinTech innovations like contactless payment systems, point of purchase services and certain smartphone apps.

FinTech is among the most promising and fastest growing segments of Arizona’s technology community.

With such a wide array of applications, Arizona is smart to invest heavily in the sector. Our state’s robust FinTech community offers a diverse range of products with the potential to completely disrupt the way we approach financial services. By continuing to break down barriers that inhibit FinTech innovation, Arizona is not only securing its leadership in the arena but also positioning itself for long-term economic prosperity.

Steven G. Zylstra is president and CEO of the Arizona Technology Council.

AB | November - December 2018 35

SMALL BUSINESS

A splendid pairing

Sweet Basil Gourmetware and Cooking School offers fun classes with kitchenware to match

By ALYSSA TUFTS

T

oo many cooks in the kitchen is common for a lot of households. However, enthusiasm for cooking is a timeless way for families and friends to connect, spend time together and develop and strengthen lifelong skills such as communication and teamwork. The best part? You can enjoy and share what you’ve made with family and friends.

At Sweet Basil Gourmetware and Cooking School in Scottsdale, owner Martie Sullivan established the business in 1993 with a recreational approach in mind. In this model, people can come and learn as much as they want about cooking — whether that’s taking a class or participating as a student in the cooking school.

In addition, Sullivan wanted a store in the same location that would offer items needed for cooking. Sullivan combined the two and Sweet Basil was created.

Sullivan and her husband had lived in Scottsdale for many years before creating Sweet Basil and decided it was the perfect location to build their business.

“I felt like Scottsdale was the culinary hub of the Valley … and thought North Scottsdale was an area where a lot of people would probably be interested in learning to cook and purchasing cooking items,” Sullivan said. “I never really thought about going anywhere else. Scottsdale seemed like the perfect location and when I found this shopping center, I researched traffic patterns and realized Scottsdale and Shea are pretty busy areas.”

After acquiring the location, Sullivan developed her business plan, learning about the retail aspect of the business. Her restaurant background and experience as an instructor at

Martie Sullivan

Sweet Basil Gourmetware and Cooking School 10479 N. Scottsdale Rd., Scottsdale Sweetbasilgourmet.com

480-596-5628 Hours: Mon.-Sat. 9:30 a.m. to 6 p.m.

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Scottsdale Culinary Institute assisted her in creating the programs and classes. By attending trade shows for a few years, Sullivan learned about the housewares business, and narrowed down areas of merchandise that fit the concept for the gourmet cook.

“Then I realized the school needed to have enough space so people could cook in it and have a place to sit down and eat,” Sullivan said. “When we started in 1993, we were in a smaller space and could seat 12 people and capacity in the school was about the same. We were in that space for about five years, then moved to our current location, which is about three times bigger.

I really wanted the two concepts to play off each other, so when people are students in the school, they are given a small discount to shop in the store.”

Sweet Basil offers classes taught by six instructors on a regular basis that include making pizza from scratch, cake decorating techniques, and learning how to create dishes from cuisines from around the world. In addition to certain types of food, they also have classes that teach cooking techniques such as baking, knife skills, sauce making and how to use gourmetware like cast iron and silicone to create tasty dishes.

“We want people to get whatever they want from the classes, but most of all, we want them to have a good time,” Sullivan said. “Whether you come and take a basics class, you come as a corporate participant or you take our 12-week class that teaches you A to Z about cooking, we want you to have a good time with it, because that’s what it’s all about.”

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DINING

WELCOME — home —

Acclaimed chef returns to his old neighborhood with the innovative and mouthwatering Collins Small Batch Kitchen

BREAKING BREAD: The Collins Small Batch Kitchen’s prime rib French dip is as perfect a sandwich as you will find in the Valley.

By MICHAEL GOSSIE

C

hristopher Collins grew up just blocks away from his latest culinary creation.

“I remember it was a big deal when my mother would finally let us ride our bikes to the Safeway at 32nd Street and Camelback,” the chef and owner of Valley-based Common Ground Culinary says. “That was a big deal.”

Now, Collins is the big deal. The hometown-boy-makes-good is back in his old ‘hood with one of his greatest concepts yet — The Collins Small Batch Kitchen. And Central Phoenix foodies won’t be able to thank him enough.

Putting the small batch in The Collins Small Batch Kitchen, Collins’ latest restaurant features both a compact menu of favorite dishes from across all of the Common Ground Culinary restaurants — Grassroots Kitchen & Tap, Wally’s American Gastropub and Twisted Grove Parlor + Bar — plus an ever-changing menu of four to eight daily specials. Offered in limited quantities, these daily specials feature whatever’s fresh, with no restrictions on the style or type of cuisine and cooked before your eyes inside The Collins’ state-of-theart exposition kitchen and wood-fired hearth.

“We look forward to coming out and engaging with the guests, letting them taste new recipes, and let the guest become a part of the interactive culinary creativity,” Collins says.

The Collins experience starts before you even enter the restaurant, thanks to bold yellow shade canopies and verdant landscaping, including several large Swan Hill olive trees on the outdoor dining patios overlooking 32nd Street. Stepping inside, guests are enveloped in a plush, Parisian bistro-style décor, including a retro-modern toile wallpaper, bold Fjord blue bar and dining room chairs, plus soft yellow and creamy white accents that complement the existing red brick and black-colored booths. Adding to the intimate appeal, the central dining room booths feature cozy captain’s chair seating and

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window pane-like patterned, frosted glass dividers, allowing each table to feel like they have the section to themselves.

But where The Collins truly shines is with the food. While every dish on the menu is a home run that Collins has crafted and created with care to match the personality of the neighborhood, there are some cannot-miss items to try during your first visit to The Collins: • Charred brussel sprouts with candied bacon, garlic and balsamic reduction ($10) come served spilling out of a Mason jar and are as perfect an appetizer as you will find.

• Be sure to share an order of the large peel ’n’ eat shrimp ($16 or $28), which are served with citrus aioli and horseradish cocktail sauce.

• Collins has perfected his onion soup gratinée ($8), which is served with bubbling gruyere that will make your mouth water just thinking about it again.

• The Maryland-style crab cakes ($28) are as good as anything you’ll find in Baltimore.

• Collins spent months perfecting his pizza recipes and it shows in the mushroom and sausage pizza ($14), served with a parmigianoreggiano white sauce and gruyere.

• Don’t leave without trying the steak frites — New York strip served with maldon sea salt and cracked black pepper and the best fries you will ever taste.

The Collins also features an amazing selection of unique spirits and craft beers, a broad wine program and an incredible brunch menu.

Welcome home, Mr. Collins.

The Collins Small Batch Kitchen

Hours: Monday-Thursday 11 a.m.-9 p.m.; Friday, 11 a.m.-10 p.m.; Saturday 10 a.m.-10 p.m.; Sunday, 10 a.m.-9 p.m.

Location: 3160 E. Camelback Rd., Phoenix Online: thecollinsaz.com

COMING NEXT ISSUE January/February 2019

• Meet the finalists for the Arizona Corporate Counsel Awards • A look at why more companies are coming to Phoenix to scale or to grow • An analysis of how emerging technologies are growing Arizona’s economy • Advice on how to talk with your aging parents about money

602.277.6045 azBIGmedia.com AB | November - December 2018 39

WEALTH ALTERNATIVES

ALTERNATIVE The rise of non-traditional opportunities has many investors redirecting their savings into alternative investments

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UNIVERSE

By MICHAEL GOSSIE

T

hink of today’s buzzwords: Cryptocurrency, blockchain, cannabis, FinTech, to name a few.

How are companies that are looking to make an impact in these market sectors being funded? In many instances, by accredited investors and high-networth individuals.

“Savvy investors are looking at alternatives for a variety of structural reasons that run the gamut from having a rare opportunity to be at the early stages of emerging and rapidly expanding industries to regaining the access that retail investors once enjoyed to high-growth deals — access that has largely been usurped and gated by the professional investor class that has expanded significantly over the last 20-30 years,” says Mark Vange, CEO of Scottsdale-based TokenIQ, the first Initial Coin Offering (ICO) agency and consulting services for blockchain and non-blockchain companies.

GAME CHANGERS: Corey Bird, principal and wealth manager at Rowland Carmichael; Mark Vange, CEO of Scottsdale-based TokenIQ; J.P. Dahdah, CEO of Vantage Alternative Custody Services; Jared B. Black, managing partner of Black Law Group; and Peter Anadranistakis, president and co-founder of Oxygen Hospitality Group, are all members of the ALTS Forum — a collaborative concept and acronym meaning “Always Looking To Solve.”

PHOTO BY MIKE MERTES, AZ BIG MEDIA

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WEALTH ALTERNATIVES

“In order for alternatives to be more mainstream, it’s critical to make it easy to vet options and invest into them.” ­‑ J.P. Dahdah, CEO of Vantage Alternative Custody Services

Interest in alternative investments — or alts — is on the rise. A report from global research and consulting firm Cerulli Associates showed U.S. wealth advisors’ mean allocations to alternatives jumped from 5.7 percent in 2016 to 7.2 percent of their total assets under management in 2017. And there’s a reason there is an increased interest in alts: everyone wants to be a part of the next Google, Apple or Amazon.

“Like automobiles, plastics, electronics, mobile phones and the Internet have done, several emerging industries are poised to transform the way we work and live,” Vange says. “Cannabis, artificial intelligence, distributed ledgers and blockchain, as well as more recently emerging fields like augmented reality, electroceuticals and commercial space exploration all represent possible future trillion-dollar opportunities in which savvy future-focused investors want to gain a foothold before they become mainstream and are occupied by incumbent interests.”

WHERE TO START? If you’re a conventional investor who has historically added only stocks and bonds to your portfolio, the word “alternative” likely conjures images of flannel-wearing rockers or people who live a nontraditional lifestyle. An alternative investment is an asset that is not one of the conventional investment types, such as stocks, bonds and cash.

“I do not actually view the ‘alternative’ investment space as alternative, in much the same way that ‘alternative music’ is actually mainstream music for many people of my generation,” says Jared B. Black, managing partner of Black Law Group.

“Would anyone ever call Nirvana or Wilco alternative bands at this juncture? One reason alternative investing is not more mainstream is that generally, investment sponsors are limited to offering their opportunity to ‘accredited investors’ — generally speaking, a person with positive net worth of $1 million.”

Experts say most alternative investment assets are held by institutional investors or accredited, high-net-worth individuals because of the complex natures and limited regulations of the investments.

“Investing in alternatives is still perceived as a complicated process, which prevents many investors from taking the first step,” says J.P. Dahdah, CEO of Vantage Alternative Custody Services, the only alternative asset custodial company in Arizona.

“In order for alternatives to be more mainstream, it’s critical to make it easy to vet options and invest into them.”

Experts say it’s also critical to today’s economic environment for investors to utilize alternatives to diversify their portfolios.

When a bull market weans and traditional markets are volatile, having an allocation to alternative funds and direct investment 42

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access to alternatives — anything other than stocks and bonds — helps to cushion a portfolio and offer diversification strategies for reducing risk and attaining attractive returns in capital and fixed income.

“Many accredited investors have heard of these opportunities, but didn’t know how to gain access,” says Corey Bird, principal and wealth manager at Rowland Carmichael. “As an advisor, our job is to review client goals and diversify to achieve their legacy now and for future generations.”

In order to make investing in alternatives more understandable, Dahdah created the ALTS Forum — a collaborative concept and acronym meaning “Always Looking To Solve” — to play on the word “alternatives.” ALTS Forum was created to help with investor education and forge communication for the alternative community. ALTS Forum is comprised of financial services executives that represent a 360-degree view of the ALTS investing ecosystem and help build strategies for investor education on portfolio diversification to incorporate the changing investment landscape.

“The biggest obstacle facing the alternative investment industry is the lack of awareness that alternative assets beyond the stock market can be purchased with tax-favored retirement plans,” Dahdah says. “Collectively, there are over $25 trillion dollars held within U.S. retirement accounts, but less than 2 percent of those dollars are invested in alternatives. Retirement accounts represent American’s largest source of investable assets, and unfortunately, we’ve all been incorrectly led to believe that our investment options are limited to Wall Street-based publicly traded securities.”

Dahdah says the ALTS Forum educates and empowers investors through local workshops, written content and video blogs that help them connect the dots that a self-directed IRA can be utilized to fund their preferred alternative investment strategies.

“Investors don’t always know where to get started with their alternative investment strategy,” says Peter Anadranistakis, president and co-founder of Oxygen Hospitality Group. “It’s important to educate and make the investment process as seamless as possible. Working with an ecosystem of financial experts is one way to gain awareness and ease the process.

By process, I mean from a RIA or investor vetting the upside potentials and risks of a sponsor’s opportunity, to recommending potential investments that meet the criteria for the investor’s portfolio to the custodial company selected to invest with retirement funds through legal and compliance. What I’ve witnessed throughout my years in the industry is once an investor takes that first step, he or she realizes there are a myriad of alternative opportunities available outside Wall Street.”

Arizona’s

home for the

BEST

of Broadway Michael James Scott (Genie) & Ensemble. Photo by Deen van Meer. © Disney

asugammage.com

WEALTH ALTERNATIVES

ALTERNATIVE INVESTMENT

THE PAYOFF Before you decide to cash in your stock and take a sip of the alts Kool-Aid, remember that some alternative asset opportunities are limited to accredited investors — those with a positive net worth of $1 million — only.

“Historically, the largest alternative investment allocations have been directed into real estate-based offerings,” Dahdah says. “However, cryptocurrencies, peer-to-peer lending, FinTech ventures, cannabis and blockchain-based private funds have emerged as the hottest alternative asset categories.”

In anticipation of a stock market correction, Dahdah says many investors are choosing non-traditional alternatives as a way of increasing their diversification into assets that are non-correlated to the stock market and can provide more stability to their overall portfolio strategy. One of the common objections to investing in alternatives is their tendency to be illiquid positions with holding periods of three to five years. Savvy investors are learning that self-directed IRAs serve as the perfect vehicle to buy illiquid investments.

“Placing illiquid assets into a long-term IRA account is a win-win solution with the added bonus of the tax advantages offered by retirement plans,” Dahdah says. “All publicly traded securities start as private companies. Amazon, Facebook and Tesla are examples of popular traditional stocks that were originally private companies in which a select number of lucky early investors got in and made a fortune. Therefore, having access to these opportunities at the ground level early on, accredited investors can experience impressive investment returns throughout the private market growth cycle.”

Before you dive into investing in that start-up that you’re convinced will be the next Google, remember that alternatives do 44

AB | November-December 2018

come with many potential obstacles.

“From our view, clients underestimate some of the potential challenges in these emerging areas,” Bird says. “Regulation is one of the greatest concerns that will eventually catch up to the operators in the various spaces. There is also a large potential for fraud. The investor will need to conduct due diligence and really understand the companies and people they are investing with, and to keep in place all the normal safeguards to eliminate intended or unintended mismanagement. Investors today seem to be focused on cash flow that is either spendable or able to be reinvested in new opportunities as market cycles change. As the market continues its historic run, some investors are looking to reduce correlation to the stock market and use alternatives to implement estate planning.”

Black says successful alternative-oriented investors will do what they have learned to do and always do best — seek out superior risk-adjusted returns in spaces that they understand, know and can appreciate — and do it continuously and with consistency.

“Many Americans are homeowners and already own real estate and many more own commercial real estate or interests in real estate, and those investors have been benefited by the positive economy of the past decade in very identifiable and easy to understand ways,” Black says. “So, in many respects, real estate investing is a ‘first base’ alternative investment space for many investors. As our historically low interest rate environment continues to hum along, I suspect that alternative investing utilizing leverage — such as commercial real estate, multifamily and similar spaces — will continue to be bright spots in the investing marketplace. One thing I have learned from experience is to try and hit singles. Just singles. But try and hit a few every month, every week, or every day.”

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WEALTH MANAGEMENT

Joe Di Vito Managing director and financial advisor RBC Wealth Management // rbcwealthmanagement.com

Di Vito has been managing assets for some of Arizona’s wealthiest families, institutions, foundations and charitable organizations since 1992. Di Vito’s wealth management planning practice focuses on asset management, retirement plan consulting, wealth transfer and estate planning. Di Vito and his team focus on their client’s specific financial goals using a consultative process hiring world-class private and public asset managers. Efficient asset management is at the core of their business.

Trend to watch: “The strong trend toward utilizing a technologically advanced and comprehensive wealth management plan. There will be more tools available to help you build, implement and monitor your own plan than ever before. The tools will become more tailored to each individual/family in the next decade and they will integrate more with professional advisors (i.e. tax and legal counsel) to provide collaborative guidance over time. This will come at a cost that is fair to the family and advisors.”

Advice for 2019: “Market corrections come on a regular, but random, basis. It’s been over nine years since the bottom of the financial recession in 2009. You should know what your response will be when the market corrects. How will you react? Will you feel like it is an opportunity to sell or wish you had bought? What would you do? Everyone should know what they will do and who will help them through difficult financial times. If you manage your own wealth, be prepared. If you do not have the skill or will to manage it all on your own, hire a professional advisor to guide you.”

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Difference makers welcome.

And it’s going to be a real page turner.

Learn how we’re different. Our culture inspires innovation, teamwork and growth.

Join us and you’ll help build a brighter financial future for people everywhere.

Apply today at Discover.com/careers

Discover Financial Services is an equal opportunity employer. All qualified applicants will receive consideration for employment without regard to race, color, religion, sex, sexual orientation, gender identity, national origin, age, protected veteran status, among other things, or as a qualified individual with a disability. © 2018 Discover Financial Services

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WEALTH MANAGEMENT

Derek Moore Founder and president Razor Wealth Management // razorwealth.com

Moore is a financial advisor, author and adjunct professor of finance and economics. He is the founder and president of Razor Wealth Management.

Moore’s book, “Broken Pie Chart,” demonstrates why traditional portfolio asset allocation may be less optimal over the next decade while outlining a new approach to withstand modern day challenges, especially since the 2008 financial crisis.

Trend to watch: “In June of 2019, provided no new developments, the economy would tie the record for longest period without a recession.

I expect to see more predictions trying to pick when the next recession or market correction may come. All of that can cause fear and apprehension for investors. It may be time to start looking beyond the classical asset allocations such as the typical 60 percent/40 percent stock and bond portfolios. Instead, using alternative strategies that have the goal of capturing upside market moves while having embedded downside hedges or buffers, may offer better risk-adjusted returns should markets come under pressure while reducing anxiety for investors.”

Advice for 2019: “After a 36-year bull market in bonds, investors are experiencing little real return in fixed income yields above inflation. If interest rates were to move materially higher, bond funds would come under pressure. This new period for interest rates may cause some challenges. At the same time, future retirees may need more growth than they think, especially considering how healthcare costs continue to rise. Life expectancies also are increasing. Moving forward we may see a larger focus on growth of assets required, given increasing costs in retirement and the reality that wealth may need to last for much longer post retirement. Based on these types of observations, more interest in alternative approaches will be sought after.”

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THE 2019

ARIZONA CORPORATE COUNSEL AWARDS

Reception & Dinner JANUARY 17, 2019 POINTE HILTON TAPATIO CLIFFS RESORT 11111 N 7TH ST, PHOENIX, AZ 85020

Az Business magazine and the Association of Corporate Counsel will recognize the vital role that in-house counsel plays and acknowledge the accomplishments of leading in-house attorneys at the annual ACC Awards.

Tickets available at azBIGmedia.com AB | November-December 2018

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WEALTH MANAGEMENT

Liz Shabaker Principal and CEO Versant Capital Management // versantcm.com

Shabaker specializes in all aspects of wealth management, with a focus on family governance and next-generation planning.

She engages with clients in a discovery process to identify the factors that impact their wealth, uncovering goals and concerns to understand the structure of her client’s financial assets and their exposure to and tolerance for risk.

She also focuses on investments, estate planning, tax planning, and philanthropy. Shabaker was named one of Az Business magazine’s Most Influential Women in Arizona Business for 2018.

Trend to watch: “I see a shift in assets to women over the next several years because they will outlive men and because of the advances they are making in the workforce. Women are more focused on both their future generations and philanthropy. They seek value beyond investment performance, so our firm focuses on enriching the client experience and our value proposition to not only address their financial needs, but also enhance their overall well-being.”

Advice for 2019: “U.S. stocks have been in a bull market for over 10 years now and the economy is booming. This is great for investors in the short run, but the party can’t go on forever so you need to expect the unexpected. Being diversified in different asset classes outside of the U.S. stock market and having a plan for when the business cycle inevitably turns will be really important for people to keep the train on the tracks and reach their goals.”

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Start your day with us!

Log on every morning to get the most up-to-date news in Arizona business, real estate, travel and lifestyle.

Visit us at azBIGmedia.com today!

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WEALTH MANAGEMENT

Cristina St. Clair Vice president, private wealth banker Bank of Arizona // bankofarizona.com

St. Clair has more than 20 years of experience in the financial services industry and has specialized in wealth management for the past 14 years. Since that time, she has expanded her expertise to include all aspects of personal and business lending, deposit and cash management services thus providing her clients with a holistic approach to financial planning. Her experience in both the investment and banking industries enables her to offer a global perspective when developing a plan to help clients achieve their individual financial goals.

Trend to watch: “‘Robo advice’ is quickly changing the landscape for many wealth managers and financial planners. These automated, algorithmdriven planning services can deliver financial advice cheaper than the high-priced, low-value advisor of the past. For investors looking for an inexpensive, commoditized investment solution, these robo advice platforms can be appealing. For the multitudes of investors who still prefer a customized financial plan with a consultative partner, a high-quality, dedicated advisor team will still be the best path for their financial futures. When making high-impact financial decisions, the person sitting across the table from you can be your most valuable asset. A technology-only solution is a long way from replacing one-on-one communication with a seasoned and specialized financial expert.”

Advice for 2019: “Find an advisor who takes a personal, consultative approach. Objective organizations who take the time to develop personalized strategies without being tied to specific partners or portfolios can focus on your financial future, not their products. The industry has made a move toward holistic retirement planning, so make sure your advisor can speak to all aspects of your financial future. Sure, 401(k)s and IRAs are central in financial planning, but working with someone who also understands healthcare planning, insurance, and Social Security as pieces to a larger retirement plan will be better equipped to help you reach your goals.”

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BIG News is your daily source for business, real estate, home and travel. Let us know your interests, and we’ll deliver the latest news directly to your inbox. Subscribe and stay in the know!

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Recognizing professionals for outstanding performance in their roles as corporate financial stewards

2018

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Local Expertise, Local Decision Making.

With Arizona roots dating back to 1899, Chase is committed to helping mid-sized business across Arizona communities achieve their goals. You can count on our full range of best-in-class products and services to position your business for long-term success. Our commercial banking team offers global capabilities and specialized industry expertise, all delivered and serviced locally to help you meet your growing needs.

To learn more, please contact: Daniel Mahoney Exeutive Director Chase Commercial Banking (602) 221-2888

© 2018 JPMorgan Chase Bank, N.A. Member FDIC. “Chase” is a marketing name for certain businesses of JPMorgan Chase & Co. and its subsidiaries (collectively, “JPMC”). 480060

Proud to be on

Your Team

Congratulations to the 2018 CFO of the Year award winners.

CBIZ & MHM are proud to support Arizona FEI and the work that finance executives like you do for your Phoenix community. Whether through accounting or one of our business advisory solutions, let us demonstrate how our team can further the reach of yours.

Deborah Kimes | 602.214.5256 | dkimes@cbiz.com MHM (Mayer Hoffman McCann P.C.) is an independent CPA firm that provides audit, review and attest services, and works closely with CBIZ, a business consulting, tax and financial services provider. CBIZ & MHM are members of Kreston International Limited, a global network of independent accounting firms.

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CFO of the Year Sponsor Representatives LETTER FROM THE PRESIDENT

T

he Arizona Chapter of Financial Executives International (FEI) appreciates and thanks you for your interest in the 12th Annual CFO of the Year Awards. FEI Arizona is presenting the CFO of the Year Awards to senior level financial professionals for outstanding performance in their roles as corporate financial leaders and stewards. The nominations and awards recognize exemplary financial management the Greater Phoenix Business community.

An independent set of carefully elected and well-qualified judges from Arizona’s business community and academia have selected winners based on their contributions to their respective organizations and their overall involvement in the Arizona business community.

FEI’s mission is to advance the success of senior level financial executives, their organizations and the profession. The FEI Arizona chapter is comprised of Phoenix Metro-area executives who represent and advocate for the interests of finance professionals of companies in all industries and all sizes within the public, private and nonprofit sectors throughout the state.

FEI Arizona serves the community by offering its members opportunities to network with their peers, stay apprised of current financial policy, standards and regulatory guidelines, continue their professional development and form valuable relationships with community leaders. We also maintain an academic awards program to encourage professional advancement of promising, finance-focused students and offer career assistance and development to members. FEI Arizona also contributes to the research and advocacy activities of our national FEI organization which impact the strategic planning of the profession’s policy, standards and regulatory structure.

FEI continuously recruits new members who meet our membership criteria and who are interested in the value gained from becoming an FEI chapter member. Membership is open to CFOs, controllers, treasurers, tax executives, academic professors, and other senior-level finance professionals whose positions and company size meet FEI’s membership criteria. Additional information may be found on the national and chapter websites, financialexecutives. org and feiaz.org.

Finally, FEI Arizona would like to thank our sponsors who have worked so closely and diligently with us to make this event a Rachael success: AZ Big Media, Chase, Keyser, Marsh Piergallini USA, Vaco, CBIZ MHM, and DLA Piper.

Very truly yours, Rachael Piergallini, President, FEI Arizona

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Kristen Campbell, director of business development, DLA Piper

Jeff Johnson, senior vice president, Marsh

Ian Davie, member, Keyser

Deborah Kimes, business development manager, CBIZ MHM

Cheryl Green, publisher, Az BIG Media

Dan Mahoney, executive director, JPMorgan Chase

Mike Green, partner, Vaco

FEI Arizona Chapter officers President: Rachael Piergallini, vice president of finance, Derma Health Skin And Laser First Vice President Adam Remis, CFO, Ace Home Services Second Vice President/Treasurer Robbie Molnar, CFO, Midstate Mechanical Past President: James Walbom, CFO, Tiempo Development, LLC

FEI Arizona Board Members Michael Day Ben Dobson CFO, dunnhumbyUSA

Adam Miller, CFO, Barron Lighting Group

Susan Hunsacker Vice president of finance, Triumph Manufacturing LLC

Chris Niezgodzki, Director of budget, planning and analysis, Grand Canyon Education, Inc.

Andrea Jones Director of finance, Bemo USA Corporation

Nathan O’Connor Executive vice president, Equity Methods

Donald Laughlin CFO, Pinnacle Transplant Technologies

Alan Peril AJP Financial Services

Eric Malick CFO, SunStream Technology, Inc.

Doug Taylor CFO, Special Olympics of Arizona

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dlapiper.com

GIVE THEM A HAND. DLA Piper congratulates all of the honorees for their fantastic achievements and thanks them for their contributions to the business community.

| NovemberDecember 2018 Further 61 Greg R. Hall, 2525 East Camelback Road, Suite 1000, Phoenix, AZ 85016 | DLA Piper LLP (US) is part of DLA Piper, a global law firm, operating through variousAB separate and distinct legal entities. details of these entities can be found at www.dlapiper.com. | Attorney Advertising | MRS000113488

THOMAS CHESTERMAN Chief financial officer

BRIAN DEAK

SHELLEY CHEN

Chief financial officer Arion Care Solutions

Director of finance Hemisphere GNSS BACKGROUND: Deak came BACKGROUND: Chen is

responsible for all functional accounting back office operations and the financial reporting. She brings an extensive range of experience to the position, including broad operational expertise, a strong financial background and in-depth knowledge of international business in technology.

MAKING DECISIONS: “The

most important decisions are supporting the business, but also controlling or minimizing the risks. In this dynamic business world, the decisions may change rapidly. I am trying to keep up with the sales, marketing, product development and operations, so the decisions that I make will be more comprehensive and goal oriented.”

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SenesTech

to Arion Care Solutions from a national public accounting firm where he served as a director and shareholder in their audit department. While in public accounting, he worked with both public and private companies in a wide array of industries and has experience with the reporting requirements under generally accepted accounting principles.

MAKING DECISIONS:

“Determining ways to protect company assets and remain profitable in a highly regulated industry. This balance can be challenging and the individuals within our company rely on me to assist in decisions that maintain this balance.”

BACKGROUND: Chesterman

joined SenesTech in 2015. He has more than 20 years of experience as the CFO of a public company in the life science, tech and telecommunications industries. Chesterman is adept at a variety of capital market access techniques and has a proven track record of developing the operational and financial infrastructure to support successful and rapid growth.

IMPACT ON COMPANY: In addition to developing a worldclass finance and accounting operation at SenesTech, Chesterman has taken on the responsibility for directing and maintaining the commercial and manufacturing teams at SenesTech, ensuring the top talent is identified, hired and developed, professionally and personally.

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ROB HOWATT

Chief financial officer

RICK FRANKE

RUTH ENGLE

Chief financial officer Bell Steel

Chief financial officer Troon Golf

BACKGROUND: Since

joining Troon in 2007, Engle has successfully led the company through a difficult recession, multiple acquisitions by the company and two successful sales of the company to private equity investors, in each case being integral to achieving premier sale multiples for the then owners. Since she joined Troon, the company has grown from 85 managed facilities to more than 300 managed facilities.

IMPACT ON COMPANY: As a former educator, Engle promotes a culture of knowledge-sharing and continuous learning. This is fostered via several programs and meetings she has established to discuss current events in the business, brainstorm and knowledge space.

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Dansons Group

BACKGROUND: Franke is an accounting and finance executive with more than 25 years’ experience providing executive-level leadership across multiple industries. He specializes in financial turnarounds and helping multimillion-dollar organizations identify opportunities to increase revenue, reduce costs, and improve the efficiency of business operations.

PIVOTAL MOMENT: “Early

in my career, I found I became a more effective financial leader when I spent time visiting with and listening, really listening, to individuals from various departments within the company.

Those conversations were key to my developing a base understanding of the corporate culture, the company’s operations and how the departments interacted.”

BACKGROUND: Howatt has

a record of success in growing enterprise value through process improvement and strategic leadership. This past year, Howatt played a key role in the corporate relocation of Dansons from Edmonton to Phoenix.

LURE OF CAREER: “My college career began during a time of recession where jobs were scarce. As I considered my field of studies, a vocation that would offer stability and sustainable job prospects in all phases of the business cycle was very important. To me, accounting and finance represented a highly transferable skill set that offered a wide range of opportunity with the least downside risk.”

Az Big Media would like to congratulate all of the 2018 CFO of the Year finalist for their outstanding performance in their roles as corporate financial leaders!

DG Fenn

commends this year’s CFO of the year finalists especially our own Terri Rosko.

602.944.4800 | 2222 W. Pinnacle Peak Rd., Suite 220, Phoenix, AZ 85027

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ROBERT LETTIERI

Chief financial officer

TOM LAWLESS

PAIGE INSALACO

Chief financial officer Sunland Asphalt

Chief financial officer Trapp technology BACKGROUND: Lawless has BACKGROUND: Insalaco relies

on her leadership and financial management acumen to steer organizations toward fiscal growth.

Her career includes positions with Deloitte, Universal Technical Institute, JDA Software, and various consultancy roles. Her passion for mentoring led her to establish a women’s networking organization.

LURE OF CAREER: “My father started his career as a CPA and when I was in the 7th grade, he mentioned to me that he thought I would make a good accountant. I don’t think he realized the impact of his off-hand remark at the time, but I have loved just about every second of my career in accounting.”

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Celltrust

more than 30 years in the industry.

He has a bachelor’s degree in accounting from Kansas State University and a CPA license. In addition to managing Sunland’s accounting department, he oversees human resources and information technology.

LURE OF CAREER: “I have always loved the different variables that make up a successful business and felt very early on that discipline of accounting was a good fit for me to understand those variables. As I progressed in my career, I realized that the CFO role allowed me to apply what I have learned to make wise decisions for my employer.”

BACKGROUND: Lettieri has

been with CellTrust from its inception and has served as the key contributor to the legal and capital formation of CellTrust.

IMPACT ON COMPANY:

Lettieri meets regularly with his team members to enable an analysis of their skill sets and opportunities for growth and recommendations. When he notices either an area that could use improvement or identifies a skill that could be developed into a new professional experience, Lettieri not only discusses the same with his team members, but also encourages the participation in webinars or other learning experiences to capitalize on such growth.

Thanks for being the wind in our sails and the anchor when we need it!

Congratulations on your nomination as a finalist for CFO of the year!

We’re proud of you and honored that you’re on our team!

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LUKE LIVAK

Vice president and chief financial officer

MITCHELL MOORE

Chief administrative officer Foundation for Senior Living

Loftin Equipment Co. /Bay City Equipment BACKGROUND: Moore BACKGROUND: Livak

joined Loftin in 2008 as senior accountant. He has held positions of increasing responsibility, most recently being director of finance.

IMPACT ON COMPANY: “In 2012, we developed an accounting internship program. We saw tremendous growth on the horizon and knew we would need more talent on our accounting team.

The goal of the program is to find qualified accounting students and bring them in as interns to give them real world work opportunities … Since we began the program, we have successfully on-boarded more than 20 interns as entry level accountants.”

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supervises and provides oversight to the areas of finance, information technology and human resources. He is responsible for the financial management of the organization, systems integrity and organizational effectiveness.

LURE OF CAREER: “I became a professional nonprofiteer in 2015 because I wanted to be making more of a difference in Arizonans’ lives. I had been traveling for an international aerospace company and missed building community at home. There certainly was a ‘cool factor’ managing a fleet of jet fighters. Now, I am still working with high-caliber, amazing people, but directly for the benefit of Arizona.”

Redefining Leadership.

Paige Insalaco Chief Financial OďŹƒcer, Trapp Technology

Trapp thanks you Paige for your inspiring leadership and amazing dedication. Without you, our award-winning success wouldn’t be possible. Congratulations to all the 2018 CFO of the Year Nominees!

T R OON TROON

CONGRATULATES RUTH ENGLE

HONORS RutH eNgle

RUTH ENGLE

Chief Financial Officer Ruth Engle

Executive Vice President & Chief Financial Officer

Ruth Engle joined Troon after serving as vice president and controller

® Ruthof Engle joined Troon after serving as viceInternational. president and controller of theat the aerospace division of Honeywell During her time

aerospace division Honeywell International.

During time at over Honeywell, Honeywell, sheofalso held vice president and CFOher positions three she also helddivisions. vice president and CFO overPricewaterhouseCoopers three leading divisions. leading Ruth began herpositions career with Ruthand began career PricewaterhouseCoopers has since held hasher since heldwith financial leadership positionsand at major global financial leadership positions at major global engineering companies. engineering companies.

Early in her career, Ruth returned to herEarly almain her career, returned toteaching her almaeconomics mater as a and professor, teaching economics mater Ruth as a professor, business at Lafayette and business at Lafayette College.

She then degree earned in herBusiness master’sAdministration degree in College. She then earned her master’s Business from University Fairleigh Dickinson University from Administration Fairleigh Dickinson and co-authored a and bookco-authored titled: “Small a book titled: “Small Business Survival to Debits, Credits and Cash: What Business Survival Guide to Debits,Guide Credits and Cash: What Every Growing EveryBusiness GrowingNeeds Business NeedsAbout to Know About Accounting and Finance.” to Know Accounting and Finance.”

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CONGRATULATIONS CONGRATULATIONS ON BEING ON BEING SELECTED NAMED ONE OFCFO THEOFVALLEY’S AS A 2018 MOST WOMEN IN THE INFLUENTIAL YEAR AWARDS NOMINEE ARIZONA FOR 2016

CFO. VIP. FR. (for real)

western window systems

Congratulations to Heather Zorge on being selected as a 2018 CFO of the Year Awards nominee.

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TERRI ROSKO

Chief financial officer

LINN SHAW

Director of finance ITS

DG Fenn Construction

BACKGROUND: Shaw is a BACKGROUND: Rosko is a

senior finance/strategic planning executive skilled with positioning companies for growth, improving efficiencies, developing business plans, enhancing performance and coaching diverse teams. Rosko is known for bringing out the best in people through proven teambuilding processes.

LURE OF CAREER: “After working in the real estate development industry, a recruiter persuaded me to interview with a general contractor. Once introduced to the construction world, I was captivated, accepted the position and haven’t looked back. The construction process is fascinating, from conception to completion. There is always something new to learn.”

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talented professional with 17 years’ experience within both public and private organizations. Bringing a well-rounded business acumen, exceptional attention to detail, while able to see the big picture with a strong financial mind. Poised to grow and maintain an organization’s culture, business and financial strength and strategies, Shaw pursues his role by providing a winning attitude.

MAKING DECISIONS: “True leaders represent the following qualities: passion, excellent communication skills and selfless mentorship. The most important decision I face daily is how I interact and provide these qualities to team members within the organization.”

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SANDRA TORRE, CPA, CGMA

DOUG SPENCER

Executive vice president & chief financial officer LAVIDGE

Chief financial officer Level 3 Audio Visual BACKGROUND: Torre has been

LURE OF CAREER: “After 20 years working as an executive for a Fortune 50 company, fate brought me the opportunity to move from a corporate environment to becoming an entrepreneur. I immediately caught the bug and for the last 16 years have been focused on building and growing privately held companies. I was fortunate to find Level 3 about six years ago. The company was ready to mature to the next level and my experience and education allowed me to join the organization and provide leadership to build value and allow for extraordinary growth. I have never looked back.”

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leading LAVIDGE’s financial team since 2003. Pivotal to the success of LAVIDGE, she has shown exceptional expertise, leadership, and initiative setting new financial standards, practices and strategic goals for the agency and serves as lead advisor for all acquisitions and mergers.

LURE OF CAREER: “I have always enjoyed a difficult challenge and found a career path in accounting and finance to incorporate my passion for strategic planning and problem solving. Attaining my CPA license was an important goal for me as I sincerely value and respect CPAs and their contributions to the business community.”

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JEFF WATTON

JAMES WALBOM

Chief financial and operating officer, co-CEO

Tiempo Development

Yandy

Chief financial officer

BACKGROUND: Watton has a BACKGROUND: Walbom’s financial

leadership is validated by the strong, consistent financial performance of Tiempo during his tenure as CFO. Since taking over this role, Tiempo has consistently improved its financial health and profitability while maintaining impressive revenue growth.

IMPACT ON THE COMPANY: During Walbom’s six-year tenure as CFO, Tiempo has maintained an average annual revenue growth rate of 26 percent per year for the last 6 years. At the same time, gross margins have improved by 39 percent and EBITDA has increased by 66 percent — from 10.5 percent to 17.5 percent.

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background in corporate finance, strategic business planning, operations and company valuation.

IMPACT ON COMPANY: Watton has played a crucial role in Yandy’s strategic development over his two and a half years with the company.

His thought leadership has impacted every department within the company – marketing, technology, merchandising, fulfillment, customer care, accounting and finance and human resources.

Because of the leadership of Watton and the company’s other executives, the company has gone through a transformation from a loosely structured, family-owned company to a professionally structured, metrics-driven business with a casual company culture.

CONGRATULATES

RICK FRANKE

AND ALL OF THIS YEAR’S CFO OF THE YEAR FINALISTS CFO OF THE YEAR AWARDS

Bell Steel CFO

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KAREN WHITNEY

Chief financial officer

HEATHER ZORGE

Chief financial officer Western Window Systems

Northcentral University

BACKGROUND: Whitney, a

licensed CPA, has served as the CFO of Northcentral University since 2013.

She also has experience in accounting and financial roles in the real estate and hospitality industries and in public accounting at PricewaterhouseCoopers.

LURE OF CAREER: “In high school, I took an accounting course at a community college which confirmed my desire to major in accounting in college. However, after a few years in accounting, I realized I wasn’t able to influence business decisions, so I decided to get my MBA. My MBA propelled me into finance and ultimately the CFO role.”

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LEADERSHIP STYLE: “I’m a people and purpose driven leader.

I know that results are built on the strength of an empowering culture, vision and good people. I love finding the story in the data, throwing in a splash of gut instinct, and using the information to help the team and company meet goals and set strategies.”

LURE OF CAREER: “I love solving puzzles and digging in to data to understand the story it is telling you.

When I took an accounting class in college, something just clicked for me, and I decided that was my path.”

CONGRATULATES Luke Livak and all of this year’s CFO of the Year Finalists.”

12 N 45th Ave, Phoenix, AZ 85043 | (602) 272-9466

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2018

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RANKED #1

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BANKING

MAKING CHANGE Interest rate hikes, Arizona’s FinTech

sandbox, marijuana and the evolution of payment systems are altering the way banks do business

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By ERIN THORBURN

H

e’ll tell you he isn’t the definitive expert on some of the most anticipated and discussed banking trends heading into 2019, but Paul Hickman, president and CEO of the Arizona Bankers Association has much to offer in detailing a clear exposition of what’s to come.

Hickman helps to deconstruct the effects of the repealed Cole Memorandum, how Arizona’s FinTech Sandbox will impact the consumer and the state and how we can relax — momentarily — when it comes to the anticipation of another recession.

Hickman talked with Az Business about the industry and what we can expect Paul Hickman in the coming year.

Az Business: How are the Federal Reserve’s interest rate hikes impacting banks in Arizona?

Paul Hickman: I think this is going to be helpful since the rate hike is based on the judicial, traditional model. Yes, the rate will go up, but so will the lending rate. The banks have been waiting for the rates to normalize. If we look back, we can observe that the interest rates were higher in 2007 and 2008 and have grown higher under current Federal Reserve Chairman Jerome Powell.

The “sell” is that a correction was essentially overdue.

It will be interesting to see how this changes — or doesn’t change — during the current administration, combined with a potential trade war with China and new concerns with turbulence in the Middle East.

AB: Things have been so good with the economy for so long and many are expecting a recession in the not-too-distant future.

What did the banking industry learn from the last recession that will help it better handle the next recession?

PH: I’m an amateur analyst, but looking back, it’s important to keep in mind that the last recession involved a financial crisis which traditionally involves a prolonged rebound. The last recession also emanated from the housing industry. Arizona was front and center in respect to exponential growth in housing.

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BANKING

Housing became one dimensional and should have remained a The only hindrance could be the Office of the Comptroller derivative industry, rather than a primary driver of the economy. of the Currency’s fight with the Conference of State Bank When the housing industry leads the economy, it becomes Supervisors on how regulation will be chartered — federal versus problematic. When industry leaders first became aware of the state. This will likely slow us down. issue, they should have hit the pause button. Arizona simply didn’t have the buyers to support the boom of gated communities AB: How can Arizona consumers expect to be impacted by the in the late 1990s and early 2000s.

FinTech sandbox?

We can learn from Michael Lewis’ “Big Short.” Preceding PH: If companies utilize the sandbox, Arizona consumers will and during the last recession, federal regulators simply didn’t be a test case who can use the new products. They may become wrap their minds around the potential effects of the the first beneficiaries of some new products. It could collateral debt obligation and mortgage-backed also be a risk if it doesn’t work. securities. We had a 70-year run on housing in the United States up until AB: The Cole Memorandum said 2008. the Justice Department would Once the music stopped, it not enforce federal marijuana brought the economy to its prohibition in states that knees. Arizona fell further legalized marijuana in some in the latest recession form. Now that the attorney than during the Great general has repealed the Depression because it Cole Memo, how does didn’t have an evolved that impact the banking economy. That’s why we industry’s ability to became Ground Zero do business with the compared with other exploding cannabis A regulatory “sandbox” for certain types of financial products markets. We lost 15 industry? and services is now available in Arizona. The Sandbox enables banks in Arizona.

PH: This is one of a participant to obtain limited access to Arizona’s market to Now, we have the more interesting test innovative financial products or services without first new compliances and subjects in terms of not obtaining full state licensure or other authorization that regulations in place. only business factors, but If and when the next also social and political otherwise may be required. The Arizona Attorney recession comes, it won’t be implications.

General’s Office is responsible for the admission driven by housing. The latest The electorates in half of process into and oversight of the Sandbox. growth cycle has been long society are getting ahead of the and it’s good. The more notable political class, much like they did economists say it will be good for with gay marriage — it happened the foreseeable future. Inflation is at very quickly. We haven’t seen such a 2 percent and is targeted to increase to 4½ quick societal shift in the modern era, with percent to 5 percent. the exception of gay marriage, and I believe the We’ll see how Chairman Powell will react under the current issue of marijuana legalization is much the same. administration.

Attorney General Jeff Sessions firmly believes that marijuana is a gateway drug to other substances and that’s why he repealed AB: What kind of impact do you see Arizona’s “financial the Cole Memo. And, Republicans aren’t going to touch the issue technology sandbox” having on Arizona’s banking industry? with a 10-foot pole because they don’t want to be primaried.

PH: I think this is going to be really interesting having a Furthermore, the FDIC isn’t even going to talk about it. regulatory-free zone for companies comprised of certain sizes.

When the 2016 election looked like Democrats were going I’m proud of Arizona for leading this. Ultimately, it’s good for us to remain in control, more states were going to legalize and produces a lot of positive attention for banks. We’ll see good marijuana for medicinal and/or recreational use, with the innovative companies stay here and grow their employment. It also exception of Arizona. has the potential to bring in more high-wage employers, which in In 2020, they’ll get marijuana legalized for medicinal and/or turn boosts housing — and it’s not happening in a vacuum. recreational use in Arizona and a handful of other states.

WHAT IS ARIZONA’S FINTECH SANDBOX?

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BANKING

For now, while the FDIC isn’t talking about it and a chilling effect has taken place, my prediction is that community and regional banks simply aren’t going to touch the issue. Our industry is the one that’s blocking progression, not because of the new administration, but because of the attorney general.

who have faced data and cybersecurity breaches. The standards in play in banking are financially costly, but so are the reputational costs of not having them in place.

The banks are naturally blamed when cybersecurity is compromised, but it’s the banks that have to put the money back — and that’s not cheap. Insurance for a cyber attack comes with a $250,000 deductible. For a community bank, that’s a huge impact to the budget if a claim is filed.

AB: De novo activity is actually gaining traction across the country. Are we seeing the possibility of any new banks coming to Arizona?

PH: I think de novo is gaining a little bit of traction. I AB: What issue, trend or concern will have the biggest impact on think we’ve seen 13 banks that are up — two of them are “in Arizona’s banking industry in 2019? organization.” It’s a good thing, offering a broad PH: One of the biggest national and local and robust banking center. Between 2009 trends is the evolution of payment and 2011, there were zero additions. No systems. International entities have a de novo applications were approved 365-settlement regime, but we don’t. or advanced.

The feds controls that. While Rural America still has a real-time settlement is being need for brick-and-mortar. considered, until we have that Digital banking is great, system in place, progression but I believe de novos of digital currency will are needed in niches. remain at a standstill.

In fact, if marijuana While Arizona did is legalized and a engage in a discussion new administration during the last legislative The Cole Memorandum was a United States Department of Justice establishes Cole session regarding memorandum issued in 2013 during the presidency of Barack Obama.

Memo-type regimes, allowing merchants The memorandum, sent to all United States Attorneys, governed federal we could easily see to pay Bitcoin for prosecution of offenses related to marijuana. The memo stated that given niche de novos in this sales tax remittance, its limited resources, the Justice Department would not enforce federal area. It will come down it was a problem with marijuana prohibition in states that “legalized marijuana in some form to how the serving the feds. You can’t and ... implemented strong and effective regulatory and enforcement attorney general feels implement digital currency systems to control the cultivation, distribution, sale, and possession about it more than how regulations in one state of marijuana,” except where a lack of federal enforcement the administration views — it would cost billions of would undermine federal priorities. The Cole Memorandum the issue. dollars. The bill was ultimately was rescinded by Attorney General Jeff Sessions in vetoed by the governor.

January 2018.

AB: What can we expect to see in We may also see the continuance the coming years in terms of mergers of token-based digital currency like and acquisitions in the banking industry?

Apple Pay. Maricopa County has a real PH: Reform Bill 2155 — also known as the problem with skimmers. These skimmers can Economic Growth, Regulatory Relief and Consumer park near a gas station and utilize a bluetooth device Protection Act, which rolls back reforms from the 2010 Doddto download credit card information — and how can they be Frank Act — will take a little pressure off compliance and lower policed? You need probable cause, which is not an easy feat when costs a little bit. The pace of mergers and acquisitions will also someone is simply sitting in a parked car. Tokenization is one way be reduced some. Naturally, consolidation occurred and was to protect merchants and consumers from skimming, so we may exacerbated by the recession. very well witness larger banks adopting tokenization first.

Another issue in banking is criticism that has risen as a result AB: How will Arizona’s new tougher data breach law impact the of closing accounts along the border. De-risking is a result of banking industry? reacting to increased scrutiny in compliance cost and increased PH: I don’t think it will affect it too much since our industry penalties for making mistakes. It’s an unforgiving environment. already has the most stringent data breach laws intact.

And the casualties are the people who need to find a new bank.

Additionally, since they are so comprehensive, tough, dynamic Although discontented border merchants has settled some and stringent, their proactive nature could help economic entities within the last year, we’re still keeping our eye on de-risking.

WHAT IS THE COLE MEMORANDUM?

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ADVISORS

SO IN SYNC,

THEY CAN

FINISH YOUR sentences. You’ve got better things to do than waste time repeating yourself. Because, if you’re not moving forward, neither is your business. Share your future with those who get it. We’re listening.

Banking, Wealth and Insurance MYJFG.COM/ADVISORS

BANKING

2019

OUTLOOK Tax reform, evolving technology and improved practices for managing growth fill banking industry with optimism

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By MICHAEL GOSSIE

T

here are higher interest rates on the horizon. Fiscal, monetary and trade policies have become more than a little confusing. And the prospect of a global trade war is putting almost everyone on edge.

But those in the banking industry remain optimistic heading into 2019.

“Optimism is at its highest level in years,” says Craig Zollinger, managing director and Intermountain Region head of JP Morgan Chase & Co. “Business owners and executives are overwhelmingly upbeat about the global, national and local economies for the year ahead. Most executives are confident in their own company’s performance as well.”

Citing the JPMorgan Chase Business Leaders Outlook, which was released in February, Zollinger says business executives point to a strong economy, easing on the regulatory front and tax reform as the key drivers behind their positive outlook.

“This should bode well for the financial services sector as companies look to invest in their businesses and seek growth opportunities, both domestically and abroad,” Zollinger says. “The capital markets business could also be very active in the coming year.”

Zollinger isn’t alone in his optimism. Here is what other Arizona banking leaders say we have to look forward to heading into 2019:

JACK BARRY, chairman and CEO, Arizona region, Enterprise Bank & Trust: “I am very optimistic about the future of Arizona’s banking climate.

For one, our economy is more diversified than it ever has been in the history of our state. We are less reliant on singlefamily home construction than ever before, and are growing well in the technology, aerospace, healthcare and industrial real estate sectors.”

MIKE BROWN, Arizona regional president, Washington Federal: “Our industry’s success will continue to be tied to how we not only react, but how we anticipate and proactively put effective plans, procedures and processes in place. In general, I think all Arizonans will adapt accordingly and we will ride a wave of prosperity at least through 2019.”

RYAN EDWARDS, managing director, Silicon Valley Bank: “I see 2019 as likely seeing a bit of a correction. The banking industry and tech specifically has been really strong for about eight years now and there likely will be a re-leveling of valuation and structures.”

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BANKING RICH ENDICOTT, president, The Biltmore Bank of Arizona, a division of Grandpoint Bank: “The bank’s outlook is very positive. Drivers that will influence business growth in Arizona include: • New tax legislation •A projected 170,000 people moving to Arizona the next two years • The growth of technology, automotive and manufacturing in the East and West Valley.”

DON H. GARNER, CEO, Alliance Bank of Arizona: “The economic climate looks positive and I think 2019 is going to be another strong year of growth.

The tax reform bill in 2018 had many benefits for businesses and I know many of our customers have exciting plans to expand in the upcoming year. We look forward to being their go-to businessbanking resource in the years ahead.”

STEPHEN P. HAGGARD, president and CEO, Metro Phoenix Bank: “Rising interest rates are front and center with every bank CEO. Intuitively, one would believe rising interest rates would be desired by banks, but a deeper dive exposes two threats: (1) sustainability of core deposit growth – as deposits tend to leave due to chasing yields; and (2) erosion of credit quality – as rising variable rate debt adversely impacts cash flow of businesses.”

TERESA MANDELIN, president and CEO, Southwestern Business Financing Corporation: “Competition has been stiff due to slowed recovery and a low-interestrate environment. With the lowered corporate tax rates and increasing interest rates, the fixed-rate 504 loans, at up to 90 percent loan-to-value, will become more attractive to businesses looking to increase capital expenditures.”

BRAD PARKER, Phoenix CEO, BBVA Compass: “The banking industry is strong. We are at the center of the economy and most aspects of the economy are doing well. The growth we see in banking is much safer and better managed, from a risk perspective, than in previous expansions. The industry will keep innovating to bring the digital age of banking to customers in new ways.”

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JIM PATTERSON, president and CEO, UMB Bank Arizona: “We are fortunate enough to have experienced continuous growth in Phoenix over the past couple of years. We are excited to continue to grow our business while supporting our clients in reaching their goals whether that be for growth and expansion or preparing for succession.”

DAVE RALSTON, CEO, Bank of Arizona: “The outlook for the banking industry heading into 2019 looks promising, but not without its challenges. Bank earnings will benefit from tax reform and rising interest rates, but will be muted by rising costs of technology and regulatory compliance. These escalating costs along with proposed regulatory reforms could accelerate consolidation in the industry.”

CRAIG ROBB, managing director, Zions Energy Link, National Bank of Arizona: “The outlook into 2019 is very strong.

There has been an exponential decline in the cost to develop these sustainable assets. The advent of battery storage with the existing technology will be competitive with existing resources. This is an economically driven change, not merely one pursued for environmental reasons.”

ROB SCHWISTER, president, Phoenix metro market, Alerus: “The industry is very healthy, so I see expanded investment in new technologies that will make it easier for people to do business with us.”

JOE STEWART, Arizona market president, Bankers Trust: “Overall, my outlook for the banking industry is positive. With interest rates widely expected to rise somewhat, the next couple of years should be good for banks. Add to this companies taking advantage of a substantial reduction in corporate taxes to spend more on equipment and expand operations.”

MICHAEL J. THORELL, president and CEO, Pinnacle Bank: “We continue to share the hope that we will see reasonable regulatory reform which will result in a positive experience for both the industry and our clients.”

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2018

The vision for Rio Reimagined begins to flow Arizona Forward leader brings new energy and experience to organization

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ARIZONA FORWARD 2018

POSITIVE ENERGY

Arizona Forward’s new CEO brings a wealth of experience and new ideas to the state’s oldest environmental advocacy organization

By MICHAEL GOSSIE

L

ori Singleton is used be being an impact player.

As one of Az Business magazine’s Most Influential Women of 2013, Singleton was responsible for developing and implementing SRP’s solar and sustainability programs.

Under her direction, SRP provided incentives to thousands of customers who installed solar energy systems on their homes and businesses.

Now, Singleton is making an impact on a statewide stage as the president and CEO of Arizona Forward, the nearly 50-yearold organization that has left a profound mark on the state’s natural and built environment, with plans to make an even bigger impact in the coming years.

LORI SINGLETON: “The message I’d like to convey is Arizona Forward is going through a time of refocusing for the future,” says the president and CEO of Arizona Forward, the state’s leading environmental advocacy organization. “It’s an exciting time to be a part of Arizona Forward and we will accomplish great things over the coming years that will impact many generations to come.”

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ARIZONA FORWARD 2018

“Coming from SRP, I have a strong background in setting goals, defining strategies and moving forward.” ­‑ LORI SINGLETON

“As a board member for Valley Forward and then Arizona Forward, it gave me the opportunity to really become part of the organization for a long time.,” says Singleton, who took over as Arizona Forward’s leader in March after a stellar 40-year career at SRP. “When the opportunity at Arizona Forward arose with the retirement of the former executive, it felt like I could make a bigger impact by joining Arizona Forward at this point in my career.”

For Arizona Forward’s board of directors, the choice was easy.

“After an extensive search and interviewing many qualified candidates, Lori stood apart as a leader with the extraordinary ability to connect vision, people and ideas, which is critical to drive the strategy and execution of our mission,” says David Skinner of HDR, who recently began his first term as board chair for Arizona Forward. “Lori has the industry knowledge, statewide connections and organizational history that makes her ideal to lead our effort to reset, refocus and re-energize as an environmental advocacy leader.”

As the new leader of Arizona Forward, Singleton’s focus is to significantly increase statewide advocacy efforts. She and the board of directors are setting a new course to make tangible progress on issues that are in line with the organization’s mission and vision. The priorities include: •A dvocating for improved use of waterways, including late Sen. John McCain’s vision of “Rio Salado 2.0” and the Santa Cruz River in Tucson.

•P romoting policies and convening state-wide dialogue to make Arizona a leader in autonomous and connected vehicle adoption.

•A dvancing Canalscape, the canal redevelopment that will promote connectivity and economic development.

• Collaborating with others to solve Arizona’s forest health issues.

“My position at Arizona Forward allows me to take my skills and experience and lend them to this organization and bring it to a new starting place and a refocus for the future,” Singleton says. “With my extensive background in energy, water and forest and the great work SRP has been able to do on the canals, there is a great synergy that will help bring some of Arizona Forward’s projects to fruition — improved forest health, Canalscape and Rio Reimagined.”

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During her time at SRP, Singleton’s work often connected her with Arizona Forward’s focus on key sustainability issues for the state.

“Many of our members are involved with water issues and know that water is an important topic now and will be in the future for Arizona,” Singleton says. “The beauty of Arizona Forward is its ability to bring parties together to convene a dialogue that leads to progress. We don’t have a stake in the game like other organizations might. Our only interest is the future of Arizona and making it vibrant, continuing economic growth and helping the state flourish.”

Arizona Forward has the unique distinction of having influenced quality of life decisions in the state since 1969 by mobilizing business leaders and policymakers. The organization’s goal is to leverage its collective power to influence how Arizona can best grow its communities, stimulate the state’s economy and enhance the environment.

“Coming from SRP, I have a strong background in setting goals, defining strategies and moving forward,” Singleton says. “I want to apply those skills and use those strategies to move this organization forward. My long-term goal is to position us to do a great job looking ahead, studying priorities and accomplish those priorities. With the board we have now and with our statewide focus, I’m confident we will be able to do a lot more than what we have been able to do in the past.”

ARIZONA FORWARD WHAT IT IS: Arizona Forward brings business and civic leaders together to promote cooperative efforts to improve the environmental sustainability and economic vitality of our state and local regions.

GET INVOLVED: arizonaforward.org

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ARIZONA FORWARD 2018

VISION

OF THE

FUTURE With Arizona Forward and ASU leading the way, Rio Reimagined begins to take shape

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By JESSE A. MILLARD

I

n the 1960s, the Rio Salado wasn’t in good shape. It was largely barren and folks thought the river was dead.

With eyes set on creating a point of pride in the Valley, Arizona State University Dean James Elmore and his students devised a plan to reimagine the Rio Salado, creating an oasis across the Valley’s desert.

The plan, dubbed the Rio Salado Project, needed a Herculean effort that would require buy-in from multiple municipalities, the state and federal governments and the myriad of communities that make of the fabric of the Valley of the Sun. The creation of Tempe Town Lake is the only portion of that grand plan that has come to fruition. So far.

Now, most of the Rio Salado still appears to be dead. It’s dusty and few realize they’re even passing over or past a river when crossing the barren land. But with ASU once again taking point after the prompting of the late Sen. John McCain, the Rio Salado could be reimagined once again — changing the face of the Valley and Arizona in the process.

This revitalized mission, Rio Reimagined, will work on 58 miles of land across the Valley, reaching from Granite Reef Dam to State Route 85, with both the Rio Salado and Gila River playing a part. Eight communities along the river will oversee the creation of this river corridor as they partner to create a point of pride and an anchor of water — and economic development — in the Valley.

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UNLEASHING THE VISION In March, Arizona municipalities and tribes signed on to see the Rio Reimagined project become a reality. Phoenix, Tempe, Mesa and the Salt River Pima-Maricopa Indian Community were a few of the entities that signed on to move the project forward.

On May 31, Arizona Forward, which brings business and civic leaders together to promote efforts to improve the environmental sustainability and economic vitality of the state, hosted its firstever Statewide Sustainability Summit. More than 250 experts from professions that ranged from architecture to hydrology gathered in downtown Phoenix to share their thoughts on Rio Reimagined.

“This is a task that is well-suited for our members,” says Lori Singleton, president and CEO of Arizona Forward. “We are an organization that brings everyone together and we help governments connect the dots. That has always been Arizona Forward’s role and that’s exactly the role we plan to take with Rio Reimagined. And that’s what Rio Reimagined needs.”

Arizona Forward’s consortium agreed on a set of recommendations for Rio Reimagined, creating a framework for the project to follow in the decades ahead as the rivers are transformed.

“This was an important first step in a major multi-generational project,” Singleton says. “When we brought in folks from the San Antonio River Walk and the Los Angeles River Revitalization and showed that these types of projects take a long time but have results that last generations, everyone got excited. We recognize this as an incredible opportunity to leave a meaningful legacy for future generations.”

Not only will it impact residents, but the potential economic impact is undeniable.

“Look at what Tempe Town Lake has done for Tempe,” Singleton says. “The economic impact is immeasurable. I don’t think Rio Reimagined will take that form in other parts of the Valley, but it can be a connector from one community to next and it can be that ribbon that brings everything together.”

AN OASIS IN THE DESERT The project got a kick-start when McCain approached ASU President Michael Crow and Wellington “Duke” Reiter, Crow’s senior advisor, wanting them to revitalize the dream of making the Rio Salado Project a reality.

During an Arizona Forward luncheon held in Tucson in July, Reiter said McCain saw the economic development and the 104

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INITIAL PRESENTATION: The initial public presentation of the Rio Salado Project took place on March 9, 1967 in the ASU Memorial Union. The presentation boards show the overall master plan, plus the overall topographical model of the 40 mile proposed development concept. Source: ASU Archives

benefits that sprouted from the creation of Tempe Town Lake and wanted to see more of it in Arizona.

With McCain hoping to see this become a reality in Arizona, Reiter and many others got to work on figuring out how Rio Reimagined could become a reality.

They set out by focusing on four things that could get key stakeholders on the same page.

“I think the things we’re talking about at the outset need to be obvious,” Reiter says. “Of course, let’s not find reasons to disagree with the project, let’s find reasons to rally around the project. So, that’s what we decided to do.”

Reiter and his team set about focusing on four core concepts on what the project has to be to make it come to fruition. The four concepts are: • This project has to be water positive. Rio Reimagined must both be perceived to be water positive and it must actually be water positive, Reiter explains. Water is so vitally important to Arizona and the Valley and water is one of the first things businesses that are looking to relocate to Arizona ask about, Reiter says. This project has to be a positive contributor to the water challenges and to the perception of those challenges.

• Identity creator. Rio Reimagined must contribute to the identity of the Valley in a way that will help businesses decide to locate operations here. Reiter mentions State Farm creating Marina Heights beside Tempe Town Lake. It’s not by accident they decided to locate there, he mentions. The lake is an attractive amenity that people want to be near.

• Including the community. Leaders from the top can’t be the only ones involved. Reiter says there are already many people

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Michael Crow living alongside the Rio Salado, so they must be included in this project.

• Funding. The funding issue must be addressed.

Reiter says organizers behind Rio Reimagined understand the situation cities, the state and federal governments are in, but he suggests it’s time to think differently. There’s a variety of rocks to overturn to find a funding solution. Reiter says many other river projects similar in scope have received funding through a variety of different ways.

“We think of this project more than just a river project,” Reiter explains. “We think of it as something much larger. When you think about the funding, look at the different modes of funding.”

Some projects in the U.S. have utilized a lot of federal funding, while others used city funding and philanthropy. Reiter says there is a perfect mixture of funding mechanisms that will make Rio Reimagined a reality. The right formula just needs to be identified.

THE FORCE BEHIND THE REALITY Reiter says that ASU is in the process of figuring out the main plan for Rio Reimagined. ASU has Melissa McCann, director of University City Exchange, working on understanding all that’s happening along the Rio Salado currently, while also tending to all of the stakeholders’ interests.

“There are complexities — federal, regional, county, city, local tribal governments,” Reiter says. “McCann and ASU have unearthed hundreds of projects of various kinds. Some have been determined, completed, halfway done, some are waiting for

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John McCain

Duke Reiter

Lori Singleton

something like Rio Reimagined to happen.”

ASU is mapping out this plan so a 501(c)(3) can then take over and make Rio Reimagined a reality.

This is a private-public partnership that is going to need to form to make this happen and the upcoming creation of a nonprofit will be that private portion that will nudge stakeholders and provide funding and be the source and leadership arm that will turn Rio Reimagined into a reality.

With the city mayors signed on, Reiter says it’s now time to nudge everyone a little further and further. It’s time to figure out how much cities might contribute to assist with Rio Reimagined, and it’s time to find out what the expectations for the nonprofit will look like.

It’s time to get everyone on the same page, Reiter says, by figuring out what departments at each city will be in charge of their portion of Rio Reimagined.

And it’s time to figure out the funding for the nonprofit, too. Soon, Reiter explains, the mission of the nonprofit will be announced, showing a pathway to this decades-long project.

After all these years, it seems Rio Reimagined is closer than ever to becoming a reality.

“Some elements of Rio Reimagined are ready to go,” Reiter says. “The West Valley, and the convergence of Goodyear and Buckeye, they have some projects ready to go, so how can we help them push this forward? We have the Army Corps of Engineers consolidating their six projects, which I think is becoming an achievement of ours.”

And as for the potential impact on the Valley?

“It will certainly set Phoenix apart and keep our economic momentum and growth going,” Singleton says.

SRP CARES ABOUT THE

Environment

At SRP, we’re passionate about environmental stewardship. We work hard to increase awareness of water resources, wildlife management and forest health. That’s why we support organizations like Arizona Forward that are committed to protecting our environment for generations to come.

To learn more, please visit srpcares.com.

ARIZONA FORWARD 2018

ENVIRONMENTAL

EXCELLENCE AWARDS

Arizona Forward program showcases the state’s progressive efforts toward sustainability and improving the environment

By ALYSSA TUFTS

A

rizona Forward’s 38th Annual Environmental Excellence Awards showed how progressive the state is becoming when it comes to issues of sustainability.

“I’ve attended the Environmental Excellence Awards as an Arizona Forward member for 20 years, and this year’s finalists show how far sustainability has come during that time,” said Lori Singleton, Arizona Forward president and CEO. “Every year, we see a wider range of entries that make our communities healthier, more vibrant and more resilient.”

A crowd of more than 500 social influencers and innovators representing public and private sector interests packed Westin Kierland Resort for Arizona Forward’s signature awards program.

The Northern Arizona Forest Fund took The President’s Award, the top honor in the Environmental Excellence Awards presented by SRP. Jurists also named the Arizona Pure Water Brew Challenge as winner of the Governor’s Award for Arizona’s Future, and two new categories — Sustainability Champion and Waste Reduction — made their debuts.

Northern Arizona national forests provide the majority of water to the Salt and Verde Rivers — water that flows from the high-elevation forests down to the desert below and eventually into millions of Phoenix residents’ homes. The Northern Arizona Forest Fund was created to address the declining forest health conditions and watersheds. The fund has completed more than 10,000 acres of projects to date, reducing risk of wildfire by about 25 percent.

The Arizona Pure Water Brew Challenge overturned a multidecade, statewide prohibition against potable water reuse. It also used craft beer to educate the public about the benefits of the “toilet to tap” concept. Engaging 26 craft brewers statewide, the team attended community festivals, conferences, parades and

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From forests to farms to families – the power of nature creates healthy rivers, air, food sources and communities.

• Thinning and transforming our forests through digital technology to restore resiliency and health • Largest ponderosa pine forest at risk from drought, warming climate, unhealthy growth and catastrophic fires • Healthy forests mean healthy air, warter, communities and economies

© iStockphoto

• Keeping the Verde River flowing and healthy so it continues to provide drinking water for 3M people in Phoenix • Partnering with farmers to create impactful, innovative projects that benefit people, nature & economies • Crop switching from alfalfa to barley kept 47M gallons of water in the Verde

HEALTHY RIVER

• Making Phoenix “cool” again • Using the power of nature to help combat record heat and improve urban living • Creating cool, green spaces by planting trees for shade and pollinator gardens for diversity

Creating hope is not a state of mind. It is what we do every day with our hearts and hands. The Nature Conservancy in Arizona is about Hope.

Visit Nature.org/Arizona Like us at facebook.com/arizona nature conservancy Tweet us at @nature_arizona Instagram us at @nature_arizona

ARIZONA FORWARD 2018 expos to increase awareness of their message, which resulted in changing a law and shifting mindsets statewide.

The highest award in each category is the coveted Crescordia, a Greek term meaning, “to grow in harmony.” A total of 14 firstplace Crescordia winners and 20 Awards of Distinction were presented this year. These projects set standards for achieving a balance between the built and natural environment, impacting the state’s physical, technical, social and aesthetic development.

Nominations embodied a wide spectrum of public, private, educational and nonprofit interests. Finalist projects were submitted by both Maricopa and Pima Counties, as well as the cities of Chandler, Flagstaff, Glendale, Peoria, Phoenix, Mesa, Tempe, Tolleson and Tucson.

“The results of this year’s competition reflect visionary efforts in both the public and private sector,” said lead judge John Flicker, who serves as president of Prescott College. Before joining Prescott College in 2014, he was president of the National Audubon Society for 15 years during which time he became a leader in the field of environmental education. “The judging panel had the diverse knowledge to evaluate how these projects will impact their communities well into the future. It was an honor for us to be part of this process.”

In addition to the Northern Arizona Forest Fund and the Arizona Pure Water Brew Challenge, Crescordia winners include, with the nominator in parenthesis:

TOP HONOR: The Northern Arizona Forest Fund took the President’s Award, the top honor, at Arizona Forward’s Environmental Excellence Awards presented by SRP.

PROVIDED PHOTO

Buildings & Structures (Civic and Historic Preservation): Wurth House (Kimber Lanning) Buildings & Structures (Commercial and Institutional): Ocotillo Restaurant (TRUEFORM landscape architecture studio) Site Development and Landscape (Landscape and Preserves): Northern Arizona Pollinator Habitat Initiative (Green NAU) Healthy Communities (Sustainable Communities): Spaces of Opportunity (Orcutt Winslow)

Healthy Communities (Parks and Trails): U-Haul – The Conservation Fund: Upper Granite Creek Aspen Restoration Project (U-Haul International) Energy and Technology Innovation: Peoria Police Patrol Services Building (Energy Systems Design, Inc.) Environmental Education & Communication: Glendale Desert Food Forest (City of Glendale Water Services Department) Sustainability Champion (Organizations and Projects): Northern Arizona Forest Fund (National Forest Foundation)

Healthy Communities (Multimodal Transportation and Connectivity): Mesa Rio Salado Sustainability Champion (Individuals): Greg Stanton – Stadium Connector Pathway (Greg Stanton supporters) (City of Mesa – Engineering Department) Waste Reduction: Waste Management Phoenix Open Healthy Communities (Public Policy/Plans): South Mountain (Waste Management of Park and Preserve Trails Master Arizona) Plan (City of Phoenix Parks and Recreation Department)

PROVIDED PHOTO

CHEERS: The Arizona Pure Water Brew Challenge overturned

a long-standing legal prohibition against potable water reuse. It also used craft beer to educate the public about the benefits of the “toilet to tap” revolution.

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